The Tilton Division oi CC Industries supplies the Natick Division with 92,001] units per month ot an infrared LED that Natick uses in a remotecontrol device it sells. The transfer price oi the LED is $10, which is the market price. However. Tilton does not operate at or near capacity. The variable cost to Tilton ot the LED is $4.90, while Natick incurs variable costs (excluding the transfer price} of $14 for each remote control. Natick's selling price is $35. a (Click on the icon for more information.) R_equireo Requirement 1. What level of additional promotional expenses would the Natick division manager choose? (Round amounts to the nearest dollar.) It is in Natick's interest to spend D on promotional expenses. thereby boosting profits by D. X More information Natick's manager is considering a promotional campaign. The market research department of Hauser has developed the following estimates of additional monthly volume associated with additional monthly promotional expenses. Additional monthly promotional expenses: $72,000 $114,000 Additional monthly volume (units) 11,500 16,500 Print DoneX Required 1. What level of additional promotional expenses would the Natick division manager choose? 2. As the manager of the Tilton division, what level of additional promotional expenses would you like to see the Natick division manager select? 3. As the president of CC Industries, what level of spending would you like the Natick division manager to select? 4. What is the maximum transfer price that would induce the Natick division to spend the optimal additional promotional expense from the standpoint of the firm as a whole? Print Done