Problem: HealthPharma has two divisions, A and B. Each division is operated as a profit center. Division A makes a specialized product used by Division B. Division A currently charges division B $35 per unit for each unit transferred to division B. B can resell the item for $120 each after spending incremental costs of $65 per unit. A's incremental cost per unit $30 A's fixed costs $100,000 (assume all of these fixed costs are unavoidable) A's annual sales to B 10,000 units A's sales to external buyers 50,000 units at $50 per unit A's capacity - 60,000 units A is planning to raise its internal transfer price to their external market price of $50 per unit. Division B can purchase comparable units for $40 each from external suppliers but Division A cannot increase its sales to external buyers if Division B purchases externally.