please answer both

out of Negotiating a Transfer Price with Excess Capacity Edit The Foundry Division of Findlay Pumps Inc. produces metal parts that are sold to the company's Assembly Division and to outside customers. Operating data far the Foundry Division for 2017 are as follows: .oo.aaa Ss.so 300.000 x 37_10 *Allocated on the of To the Am bty Divisi 32,800.000 (1...0.000) (700.0001 To Outside (S2s,000) S szs,ooo Tota (1'225,000) ssss,ooo The Assembly Division has just received an offer from an outside supplier to supply parts at 55.15 each. The Foundry Division manager is not willing to meet the 55.15 price. She argues that itcosts her $5.35 per partto produce and sell to the Assembly Division, so she would show no profits on the Assembly Division sales. Sales to outside customers are ata maximum, 300,000 parts. a. Verify the Foundry Division's 55.35 unit cost figure. costs Total u c. Could the Foundry Division meet the 55.15 price and still show a net profit for sales to the Assembly Division? Show.' computations. use a negative sign only to indicate a net loss. Otherwise do not use negative signs with your answers. to Assembly Division at $5.15 price (1.440.000) x out of Divisi all Statment Contribution Fid costs Net profit (Ao S 820,000 (700.000) x eo.ooo Dual Transfer Pricing The Greek Company has two divisions, Beta and Gamma. Gamma Division produces under the dual transfer price system, Beta Division pays onlythevariablecostperunit.GammaDivision'sfixedcostsareS270,OOOperyear.BetaDivisionsellsitsfinishedproducttooutsidecustomersatS22perunit.3etahasvariablecostsofS5perunit, in addition to the costs from Gamma Division.3etaDivision'sannualfixedcostsareS170,OOO.Therearenobeginningorending inventories. Prepare the income statements for the two divisions and the company as a whole. Do not use negative signs with your answers. compa y Total Varisble c Total Contributi costs 840, on 820,000 200.000 240,000 440,000 400,000 1 so,ooo 210,000 1 Aoo,ooo 338,000 1.080000 sss,ooo 2so,ooo 408,000 2480.000 240,000 sso,ooo 440,000 szo,ooo