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TrueValue Company makes all types of office desks. The General Desk Division is currently producing and selling 1 0 , 0 0 0 desks (

TrueValue Company makes all types of office desks. The General Desk Division is currently producing and selling 10,000 desks (called General) per year, which is the yearly demand for this type of desk. The General Desk Division has a capacity of 15,000 desks.The variable costs assigned to each desk are $300 and annual fixed costs of the division are $600,000. The General desk sells for $400.The Executive Division wants to buy 5,000 General desks at $270 for its custom office design business. Executive Division buys either all 5000 desks from General Division or none. Suppose the Executive Division can sell the desks in the outside market for $460 after incurring additional costs of $100 per desk.Suppose each division wishes to maximize their division profits.(a) Is it optimal for the General Desk Division to accept the order from the Executive Division?Pental CLICK 05(b) From the perspective of the company (as a whole), should the order be accepted?How much does firm-wide profit change if the order is accepted?(c) What is the optimal transfer price per unit? Does this price achieve goal congruence?
D) assume now that the capacity of the General Deak Division is 10,000 desks. Using the general price formula, what is the optimal transfer price per unit?

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