TK Electronics is a manufacturer with two departments: Computer Chips and Cell Phones. The computer chip that is produced in the Chips Department can be sold to customers at $2.50 per chip. The costs associated with the computer chips are as follows: Variable manufacturing costs Variable selling and administrative costs. Capacity. Current production and sales $1.20 $0.40 250,000 units 250,000 units The Cell Phone Department has been purchasing the chips that they need for $2.25 per chip from Chips R Us, but the manager was thinking that if the Chips Department could supply the chips for less than what Chips R Us is asking, then they would arrange a transfer between departments instead of giving the business to an external company. The Cell Phone Department requires 30,000 chips per period. Required: 1. Should the Chips Department supply the chips to the Cell Phone Department under these circumstances? If so, at what price or price range? 2. Now assume that current production and sales are 210,000 units. Should the Chips Department supply the chips to the Cell Phone Department under these circumstances? If so, at what price or price range? 3. Now assume that production and sales are the original 250,000 units, but variable marketing and administrative expenses can be reduced by 75% if the units are transferred internally. Should the Chips Department supply the chips to the Cell Phone Department under these circumstances? If so, at what price or price range