Transfer pricing and capacity utilization. Division A manufactures screens used in high-definition TVs. It sells its one product, a standard screen, for a price of $210 per screen. Variable costs are $90 per screen, and allocated fixed costs amount to $95 per screen. Division B has asked Division A to supply 5,000 custom-made screens. These custom screens have a variable cost of $105 per unit. Division A believes that its standard screen and the custom screen for Division B consume the same amount of capacity to make. It now has the capacity to make 20,000 screens annually. Division B wants to use the custom screens as components for custom made computer monitors. Division B can sell these monitors for $400 each after incurring an additional variable cost of $210 per monitor. Required: For each of the following scenarios answer the following: What is the minimum price per custom screen that Division A can set for this transfer and maintain its profit at the current level? What is the maximum transfer price Division B is willing to pay per custom screen? Can the transaction happen? (Hint: think of this problem as pertaining to short-term decision making.) a. Division A is currently making 12,000 standard screens. Division B cant buy these custom screens anywhere else. b. Division A is operating at capacity with standard screens. Division B can find other suppliers willing to make the custom screen for $215 each. c. Division A is making and selling 16,000 standard screens currently. Division B wants to buy all 5,000 screens from Division A or none at all. Alternatively, Division B can find another supplier that would manufacture the custom screens for $150 each.