2. Transfer Pricing The Roberts Corporation has two different divisions. The Ace Division produces specialized steel plates that are used in the Garbage Can Division. The following unit costs are incurred in the production of these plates by Ace. Direct materials $1.00 Direct labor 2.00 Variable factory overhead 3.00 Fixed factory overhead (all allocated) 4.00 The Ace Division has a capacity of 100,000 units per year. The Garbage Can Division has been paying $9 per unit from an outside supplier and needs 10,000 units for the current production. The Ace Division is currently selling its plates outside for $12 per unit. They want to know if they should transfer the parts internally under each of the scenarios that follow. To find this, you need to determine the maximum and minimum transfer price for each. REQUIRED: 1. The Ace Division is currently producing and selling 85,000 units. 2. The Ace Division is currently producing and selling 100,000 units. 3. The Ace Division is currently producing and selling 96,000 units a year. Maximum Minimum At 85,000 current production At 100,000 current production At 96,000 current production 4. What should be done if the minimum exceeds the maximum