Required:1. Calculate the minimum and maximum transfer prices.2. Assume that the

Required:1. Calculate the minimum and maximum transfer prices.2. Assume that the transfer price agreed on between the two managers is halfway between the minimum and maximum transfer prices. Calculate this transfer price. What markup over full cost is implied by this transfer price?3. Refer to Requirement 2. Assume that in the following year the outside price of subwoofers increases to $32. What is the new full cost-plus transfer price?4. Assume that two years after the initial agreement the market for subwoofers has softened considerably causing excess capacity for the Auxiliary Components Division. Would you expect a renegotiation of the full cost-plus pricing arrangement for the coming year? Explain.