0 Required information /The following information applies to the questions displayed below/ 10 In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profts case Division > Capacity in units Number of units being sold to outside custoners 200,000 200,090 200,000 160,00 Selling price per unit to outside customers s 90 Variable costs per unit 75 60 70 5 Fixed costs per unit (based on capacity) 13 48,60040,800 86 7 Division Y Number of units needed for production Purchase price per unit now being paid to an outside supplier Required: 1. Refer to the data in case A above. Assume in this case that $3 per unit in variable selling costs can be avoided on intracompany sales a What is the lowest acceptable transfer price from the perspective of the selling division? b what is the highest acceptable transfer price from the perspective of the buying division c What is the range of acceptable transfer prices of any) between the two divisions? If the managers are free to negotiate decisions on their own, will a transfer probably take place