Hamlet Industrles is organized Into two dlvisions, 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 intermediate 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 speclal order pending.

Required:

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

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.

Complete this question by entering your answers in the tabs below.

B$.$ Using your recommended transfer price, 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.