Transfer Pricing and Special Orders - Washington State products has several manufacturing divisions.. Please see the Question P24-38 below

Required answers for a, b, c, d

Thanks much

Washington State Products has several manufacturing divisions. The Sea Division produces a mponent part that is used in the manufacture of electronic equipment. The cost per part for July is Transfer Pricing and Special Orders as follows $160 120 Fixed cost (at 2,000 units per month capacity) Total cost per part 280 or Seatle Division's output is sold to outside manufacturers, and some is sold internally to the Redmond Division. The price per part is $400. The Redmond Division's cost and revenue structure follow. $2,000 Less variable costs per unit $400 Cost of parts from the Seattle Division. . . 800 1,200) . . Other variable costs . . . . . . . . . . . . . 800 (200 Contribution margin per unit Less fixed costs per unit (at 2,000 units per month) .. . . . . . .. . $ 600 Net income per unit. The Redmond Division received a one-time order for 10 units. The buyer wants to pay onl per unit. Required a. From the perspective of the Redmond Division, should the S970 price be accepted? Explain. b. If both divisions have excess capacity, would the Redmond Division's action benefit the company as a whole? Explain. c. If the Redmond Division has excess capacity but the Seattle Division does not and can sell all its parts to outside manufacturers, what would be the advantage or disadvantage of accepting the ten-unit order at the $970 price to the Redmond Division? d. To make a decision that is in the best interest of the company, what transfer-pricing information does the Redmond Division need