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3. Callisto Company's 2D 2: Division is currently purchasing a part from an outside supplier for $27 per unit. The company's 3D Division, which has

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3. Callisto Company's 2D 2: Division is currently purchasing a part from an outside supplier for $27 per unit. The company's 3D Division, which has NO excess capacity, makes and sells this part for external customers at a variable cost of $21 and a selling price of $26. If 3D begins to sell the part to 2D division, it will use the general transfer- pricing rule. If two divisions are negotiating a transfer price, what would be the lowest price which 3D division is willing to accept? Write your answer with only a single number (like 49, not $49. Do not add any word or mark.) Your answer 4. Africa, Inc. has two divisions, 20 poi one located in North and the other located in South. North sells a specialized circuit to South and just recently raised the circuit's transfer price. This price hike had no effect on either the volume of circuits transferred or on South's decision of whether to acquire the circuit from either North or from an external supplier. On the basis of this information, which of the following correctly shows the effect of the transfer price on the South divisional profit and Overall company profit? O (South, Overall) = (increase, increase) 0 (South, Overall) = (decrease, no change) 0 (South, Overall) = (decrease, increase) O (South, Overall) = (increase, no change 5. General Auto's North Division 2 is currently purchasing a part from an outside supplier. The company's South Division, which has excess capacity, makes and sells this part for external customers at a variable cost of $19 and a selling price of $31. If South begins to sell the part to North, it will be able to reduce variable cost on internal transfers by $3. On the basis of this information, two divisions are negotiating a transfer price. What would be the lowest price which South division is willing to accept? Write your answer with only a single number (like 49, not $49. Do not add any word or mark.) Your

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