10 Question Three Transfer Pricing Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers Variable cost per unit Total nxed costs.. Capacity in units S40 830 S10,000 20,000 Division B of the company in one of its products. Division B currently purchases a similar part from an company for $38 per unit and would like to by the part from Division A. Division B same company would like to use the part manufactured by Division A requires 3,000 units of the part each period. Division A is now selling only 15,000 units to outside customers. Required What should be the lowest acceptable transfer price by Division A? (Show your calculations) a. 4 marks) b. Assume that Division A has no excess capacity and sells all 20,000 units to outside customers, calculate the transfer price that Division A would be willing to accept. (Show your calculations) 4 marks) c. If the selling expenses of Division A when selling to outside customers is $3. Calculate (a) and (b) above again (8 marks)