PLEASE DO STEP BY STEP CALCULATION

The Pelham Division of CC Industries supplies the Dover Division with 98,000 units per month of an infrared LED that Dover uses in a remote-control device it sells. The transfer price of the LED is $9, which is the market price. However, Pelham does not operate at or near capacity. The variable cost to Pelham of the LED is $4.85, while Dover incurs variable costs (excluding the transfer price) of $13 for each remote control. Dover's selling price is $36. (i) (Click on the icon for more information.) Required Requirement 1. What level of additional promotional expenses would the Dover division manager choose? (Round amounts to the nearest dollar.) It is in Dover's interest to spend on promotional expenses, thereby boosting profits by Requirement 2. As the manager of the Pelham division, what level of additional promotional expenses would you like to see the Dover division manager select? (Round the amount to the nearest dollar.) Pelham's manager would like Dover to spend the highest amount, _ on additional promotional expenses to generate additional volume of units. Required More Information 1. What level of additional promotional expenses would the Dover division Dover's manager is considering a promotional campaign. The market research manager choose? department of Hauser has developed the following estimates of additional monthly 2. As the manager of the Pelham division, what level of additional promotional expenses would you like to see the Dover division manager select? 3. As the president of CC Industries, what level of spending would you like the volume associated with additional monthly promotional expenses. Dover division manager to select? 4. What is the maximum transfer price that would induce the Dover division to spend the optimal additional promotional expense from the standpoint of the firm as a whole