12) Division C makes a part that it sells to customers outside of the company. Data concerning this part appear below: 12 S Selling price to outside customers Variable cost per unit Total fixed costs 56 36 S 430,000 28,400 Capacity in units Division D of the same company would like to use the part manufactured by Division C in one of its products. Division D currently purchases a similar part made by an outside company for $55 per unit and would substitute the part made by Division C. Division D requires 5730 units of the part each period. Division C has ample excess capacity to handle all of Division D's needs without any increase in fixed costs and without cutting into outside sales. What is the lowest acceptable transfer price from the standpoint of the selling division? A) $52 B) $36 C) $55 D) $56 13) Division A makes a part with the following characteristics: Production capacity in units Selling price to outside customers Variable cost per unit Total fixed costs 30,800 units 23 15 $ 105,200 Division B, another division of the same company, would like to purchase 16,100 units of the part each period from Division A. Division B is now an outside supplier purchasing these parts from at a price of $19 each to handle all of Division B's needs Suppose that Division A has ample idle capacity without any increase in fixed costs and without cutting into sales to outside customers. If Division A refuses to accept the $19 price internally and Division B continues to buy from the outside supplier, the company as a whole will be: A) worse off by $64,400 each period C) worse off by $89,800 each period B) worse off by $12,800 each period. D) worse off by $10,100 each period