The monthly income statements, in thousands of dollars, for the two divisions follow. Production and sales amounted to $32,200$ units.

Assume there is no special order pending.

Required:

a$.$ What transfer price would you recommend for Hamlet Industries?

b$.$ Using your recommended transfer price, what will be the income of the two divisions, assuming monthly production and sales of

$32,200$ units?

c$.$ The manager of the Fabrication Division complains about the transfer price, saying that division profits are unfairly low. The two

division managers meet and negotiate a transfer price of $$148.$ What will be the income of the two divisions, assuming monthly

production and sales of $32,200$ units.