14 Part 2 of 2 Required Information The following information applies to the questions displayed below.) In each of the cases below, assume Division X has a product that can be sold elther 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 profits 6.66 points Case 8 25 110,000 110,000 $59 24 88 95,000 70,000 $ 35 $ 19 eBook Division II Capacity in unita Bumber of write being sold to outside customers Selling price per unit to outside customers Variable costs per unit Fixed costs per unit (based on capacity) Division II Sumber of units needed for production Purchase price per unit now being paid to an outside supplier Mint 20,000 20,000 Print $ 54 $ 38 References Required 2. Refer to the data in case B above. In this case, there will be no savings in variable selling costs 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 and make decisions on their own, Will a transfer probably take place? Complete this question by entering your answers in the tabe below. Rea 24 Reg 28 Reg 2C What is the lowest acceptable transfer price from the perspective of the selling division? LOWER SE ok Complete this question by entering your answers in the tabs below. es Reg 2A Reg 28 Reg 2C What is the highest acceptable transfer price from the perspective of the buying division? Moghest acceptable transfer pnce Reg 2C>

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