QUESTION 4 West Lake Industries is a decentralized firm. It has two investment centres, West and Lake, that are evaluated on the basis of return on investment. West has the capacity to manufacture 10,000 units of component TR222. West's variable costs are $140 per unit Lake uses component TR222 in one of its products. Lake adds $85 of variable costs to the component and sells the final product for $425. Required Consider the following independent situations. a. West can sell all 10,000 units of TR222 on the market at a price of $225. Lake is willing to buy 3,000 of those units. What should the transfer price be? Explain your decision. Of the 10,000 units of component TR222 it can produce, West can sell 7,000 units on the market at a price of $225. Lake is willing to buy an additional 3,000 units. What should the transfer price be? Explain your decision. Of the 10,000 units of component TR222 it can produce, West can sell 8,000 units on the market at a price of $225. Lake is willing to buy an additional 3,000 units. What should the transfer price be? Explain your decision