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Information about the 2 divisions of The Hobbit Car Emporium is as follows; Froto Windshield Division Bilbo Car Company capacity 80,000 windshields 50,000 cars variable

Information about the 2 divisions of The Hobbit Car Emporium is as follows;
Froto Windshield Division Bilbo Car Company
capacity 80,000 windshields 50,000 cars
variable cost of windshield: $400
variable cost of car $12,000 plus cost of windshield
Bilbo Sells cars to the following:
The Shire Autoplex 20,000 cars at $14,000 each
Prancing Pony Autos 20,000 cars at $13,000 each
Cars of Rivendale 10,000 cars at $12,600 each
Situation 1: Because Hobbit Cars are a unique size and shape, there is no outside market for Froto's Windshields
a) What transfer price should be used to 'sell' windshields to Bilbo?
b) How many cars should Bilbo make and sell?
c) how do you evaluate Froto and Bilbo (cost, revenue, or profit center)?
Situation 2: MordorZone, the Middle Earth's largest auto supply store wants to buy up to 80,000 windshields from Froto at $900 each
a) How many windsheilds should be sold to MordorZone to maximize Hobbit profits?
b) What transfer price should be used to 'sell' windshields to Bilbo?
C) How many cars should Bilbo make and sell?
d) How do you evaluate Froto and Bilbo (cost, revenue, or profit center)?
Situation 3: You are Gandoff, CEO of Hobbit Car Emporium and MordorZone, the Middle Earth's largest auto supply store want to buy up to 30,000 windshields
from Froto at $900 each
a) How many windshields should be sold to MordorZone to maximize Hobbit Profits?
b) What transfer price should be used to 'sell' windshields to Bilbo?
c) How many cars should Bilbo make and sell?
d) How do you evaluate Froto and Bilbo (cost, revenue or profit center)?
BONUS 5 POINTS (NO PARTIAL CREDIT) MordorZone wants to buy 50,000 windshields from Froto at a price of $575 each. MordorZone is unwilling to compromise on either
the price or the quantity, so Froto either sells 50,000 or 0 windshields to MordorZone. What is the impact on Hobbit income if Froto sells windshields to MordorZone?
I want a dollar amount and whether profits increase or decrease.

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