11/17/2015 Lab Chepler 10 Rosa Arnadottir Whitecotton: Managerial Accounting 2e: ACCT 2302 Fall 2015 Syn 34239-014 Lab Chapter 1o 2. 4.00 points 400 points Tulip Company is made up of two divisions: A and B. Division A produces a widget that Division B usos in the practon of its podet. Varatie cost per widget is $0.7% full cost is $1.00. Comparatie widgets sell on the open market for $1.50 each. Division A can produce up to 2 milion widgets per year but is cumently operating 0y 50 pocent capacity. Dision B expects te une 10,000 widgets in the current year. 1. Detemine the minimum and maximum transfer prices. Minimum Transfer Price Maximum Transfer Price 2 Calculace Tulip Company's total benefit of having the widgets transferred betwreen these divisions. Total Beneft 3. if the transfer price is set at $0.75 per unit, detemine how much profit Division A will make on the transfer. Determine how much Division B will save by not purchasing the widgets on the open market Round your answers to 2 decimal places.) per Unit per Unit Division A Profit Division B Savings 4. If the transfer price is set at $1.50 per unit, determine how much profit Division A will make on the transfer. Determine how much Division B will save by not purchasing the widgets on the open market. Round your answers to 2 decimal places