McArther Company has two divisions, Division C and Division D. Division C manufactures Part C82 and sells it to Division D, and also sells the same part to the outside market for $54 per unit. Division C has capacity to make 925,000 units of C82 per year. The division's fixed costs are $5,500,000 per year and its variable costs per unit are as follows: (Click the icon to view the data for Division C.) - Part C82 is an essential component for Division D's only product, the division sells 500,000 units per year at a price of $160 per unit. Division D's fixed costs are $6,000,000 per year and its variable costs per unit, excluding the cost of Part C82, are as follows: (Click the icon to view the data for Division D.) Read the requirement. Suppose Division C's demand for C82 from the outside market is currently 400,000 units per year. By how much will McArther's income decrease if Division D purchases its desired 500,000 units of C82 at $54 per unit from the market rather than from Division C7 If Division D purchases its desired 500,000 units of C82 at $54 per unit from the market rather than from Division C, McArther's income will decrease by $ What transfer price(s) would you suggest to induce both divisions to want Division D to purchase from Division C instead of from the market? To induce an internal transfer, the transfer price should be Division C I Division D X st DS Direct materials 18 Direct labor 15 Variable overhead 12 852 Direct materials Direct labor Variable overhead 222 13 one 25 y 13 pe ar da SPS W Print Done Requirement Print Done - much will McArther's Requirement Suppose Division C's demand for C82 from the outside market is currently 400,000 units per year. By how much will McArther's income decrease if Division D purchases its desired 500,000 units of C82 at $54 per unit from the market rather than from Division C? What transfer price(s) would you suggest to induce both divisions to want Division D to purchase from Division C instead of from the market? ivision C, McArther's sion C instead of from