The Atlantic Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market. Division B currently uses this sub-assembly for a final product that is sold outside at $2,430. Division A charges division B market price for the part, which is $1,430 per unit. Variable costs are $1,050 and $1,200 for divisions A and B, respectively. The manager of division B feels that division A should transfer the part at a lower price than market because, at market, division B is unable to make a profit. Compare the contribution margins under three different alternatives. Assume that division A can sell in the open market only 550 of the 1,100 units it can produce every month, at $1,430 per unit. Assume also that a 20% reduction in price is necessary to sell all 1,100 units each month. Assume transfers are made and the price is maintained. Alternatives Contribution Margin Maintain price and no transfers Cut price and no transfers $ Maintain price and transfers $ Should transfers be made? If so, how many units should the division transfer and at what price? Units transferred units Price within the range to $