Problem 3 Woodville Industries evaluates its divisions based on residual income. The Hiltor Division has the capacity to produce 20,000 units of a component. The Hilton Division's variable costs are P150 per unit; fixed costs are P110 per unit. The Sitton Division can use the product as a component in one of its products. Tht Sitton Division would incur P75 of variable costs to convert the component into its 0W1 product which sells for P300. Required (consider each question independent of each other): a. Assume the Hilton Division can sell all that it produces for P285 each. The Sittor Division needs 1,000 units. What is the appropriate transfer price? b. Assume the Hilton Division can sell 18,000 units at P285. Any excess capacitj will be unused unless the units are purchased by the Sitton Division (which car use up to 1,000 units). What are the minimum and maximum transfer prices