The upstream division (in short: UP) of the Noble Laggards, Inc. makes two products, A and B. Currently UP makes 300,000 units of product B, which it sells in the external market at a unit price of $40; and it makes 400,000 units of product A, shipped internally to the DOWN division at a transfer price of full cost plus a 10% markup. UP incurs $10 unit-variable costs (consisting of direct materials and direct labor) for each unit of A or B. The UP division also incurs fixed OH of $14 million, mostly for allocated corporate SG&A and building lease costs. Variable OH is negligible. All OH of the UP division is allocated to products A and B on the basis of their respective variable costs. The DOWN division converts each unit of product A into one unit of a final product at variable further-processing costs of $10. It sells the final product for $60 to a single B2B customer who buys exactly 400,000 units. Hence, the quantity currently transferred from UP to DOWN fully covers DOWN's needs. All division managers are compensated solely on the basis of their respective divisional income a. Compute the UP division's income in the status quo setting described above. b. The manager of the UP division considers raising the price for product B in the external market to $45 (from $40). Such a price increase would make the sales quantity drop to 240,000 units of B (from 300,000 units). Compute the impact of such a price increase on the shareholder value of Noble Laggards, Inc. c. Will the manager of the UP division carry out the price increase for product B? Comment on your findings. If you identify a goal conflict between the UP division's management and shareholders, make suggestions how to improve the situation