Sandpiper Inc. has Division A that manufactures a component that sells for $150 and has a variable cost of $30. Division B of Sandpiper uses this component when assembling its product. It is currently purchasing 10,000 units of this component from an outside company for $145. This division is considering purchasing the component internally. Which of the following is true if Division A has idle capacity large enough to complete the order? 1. Minimum price the seller would take is $150 2. Maximum price the buyer would pay is $145 3. A profitable deal can be struck between the divisions 4. If a transfer price is set at $120 Sandpiper's net income will increase by $1,150,000 if Divisions A and B trade internally. Statement #3 Statement #1 O All of the Statements are true Statement #2 Statement #2, #3, and #4 Both Statement #1 and #2 O Statement #4