Hero Bicycles produces luxury bicycles and bicycle compo products that have variable costs of $215 per unit. For the 50,000 units to the Assembly Division at 145 percent of variable co pays only the variable cost per unit fat rate indicated abovel Assembly sells its finished products to outside customers addition to the costs from Framing. The annual fixed costs inventories during the year. 2. Supose that the price for the pas could be increased to 900 s Division was For simplicity that there is no mal transfer prices that should lead to the con ponents. The company has two divisions. The Framing Division pro The current year, sales were 200 000 to outsiders at 525 per un an costs. Under a dual transfer pricing system, the Assembly ove. The fixed costs of Framing Division were $650,000 pe ners for $450 per unit. Assembly has variable costs of $125 per un costs of Assembly were $225.000. There were no beginning or en RT- i- B EES Required: (show all your calculations) What are the operating incomes of the two divisions and incomes of the two divisions and the company as a whole for the year? (6 marks) Eraming Assembly Company Revenue 62,587,500 22,500,000 85,087,500 VC 53,750,000 6,250,000 60,000,000 FC 650,000 225,000 875,000 Transfer costs 15,587,500 15,875,500 Division 1 8,187,500 437,500 8,337,000 chal Explain why the company's revenues are less than the sum of the two divisions' total revenues. (1 mark) MacBook Air