Hamlet Industries is organized into two divisions, Fabrication and Finishing. Both divisions are considered to be profit centers, and the

two division managers are evaluated in large part on divisional income. The company makes a single product. It is manufactured in

Fabrication and then packaged and sold in Distribution. There is no intermedlate market for the product.

The monthly income statements, in thousands of dollars, for the two divisions follow. Production and sales amounted to $32,600$ units. $($refer to Image$)$

Assume there is no special order pending.

Required:

a$.$ What transfer price would you recommend for Hamlet Industrles?

b$.$ Using your recommended transfer price, what will be the Income of the two divisions, assuming monthly production and sales of

$32,600$ units?

c$.$ The manager of the Fabrication Division complains about the transfer price, saying that division profits are unfalrly low. The two

division managers meet and negotlate a transfer price of $$148.$ What will be the Income of the two divisions, assuming monthly

production and sales of $32,600$ units.

The manager of the Fabrication Division complains about the transfer price, saying that division profits are unfairly low. The

two division managers meet and negotiate a transfer price of $$148.$ What will be the income of the two divisions, assuming

monthly production and sales of $32,600$ units.

Note: Enter your answers in whole dollars not in thousands of dollars. $($please complete parts A for transfer price and part C$,$ Thanks$)$