Question Cheung's Corporation manufactures dishwashers. Within the company, the Assembly Division has asked the Pump Division to supply it with 10,000 units of part P700 this year to use in one of its products. The Assembly Division has received a bid from an outside supplier for the parts at a price of $25.00 per unit. The Pump Division has the capacity to produce 50,000 units of part P700 per year. The Pump Division expects to sell 46,000 units of part P700 to outside customers this year at a price of $26.00 per unit. To fill the order from the Assembly Division, the Pump Division would have to cut back some of its sales to outside customers. The Pump Division produces part P700 at a variable cost of $17.00 per unit. The cost of packing and shipping the parts for outside customers is $1.00 per unit. These packing and shipping costs would not have to be incurred on sales of the parts to the Assembly Division. Required: (a) What is the range of transfer prices within which both the Divisions' profits would increase as a result of agreeing to the transfer of 10,000 parts this year from the Pump Division to the Assembly Division? (5 marks) (b) Is it the best interests of the overall company for this transfer to take place? Explain. (3 marks) (Total: 8 marks)