Southfield Division offers its product to outside markets for $$119.$ It incurs varlable costs of $$44$ per unit and fixed costs of $$141,000$ per

month based on monthly production of $22,400$ units. Northfield Division can acquire the product from an alternate supplier for $$124$

per unit or from Southwest Division for a transfer price of $$119$ plus $$6$ per unit in transportation costs.

Required:

a$.$ What are the costs and benefits of the alternatives avallable to Southfield Division and Northfield Division with respect to the

transfer of Southfield Division's product? Assume that Southfield Division can market all that it can produce.

b$.$ How would your answer change if Southfield Division had Idle capacity sufficient to cover all of Northfield Division's needs?