Question 1 10 Marks 26 Minutes Amsterdam Company is a Manufacturing company that currently operates with two divisions: Algoma and Athabasca. The Algoma division currently manufactures a product that the Athabasca division purchases from an outside supplier. The Athabasca division needs 40,000 units each year, and pays the outside supplier $40 per unit. Algoma division's variable manufacturing cost is $25 per unit and has the capacity to manufacture 65,000 units per year. Currently Algoma has only produces and sells 50,000 units per year at a selling price of $46 per unit. Required A) Calculate the minimum and maximum transfer prices. B) Assume that the managers of both divisions agree on a transfer price of $39 per unit. Calculate the incremental income of each division if a transfer of 40,000 units is done