9 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. Case Part 1 of 2 2 points Division X: Capacity in unito Number of units being sold to outside customers Selling price per unit to outside customers Variable conta per unit Fixed costs per unit (based on capacity) Division Y: Number of units needed for production Purchase price per unit now being paid to an outside supplier 103,000 106,000 103,000 84,000 51 $ 25 $ 29 $ 17 65 4 Shipped 22,000 22,000 $ 445 Book Hint Required: 1. Refer to the data in case A above. Assume in this case that $2 per unit in variable selling costs can be avoided 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 (if any) between the two divisions? If the managers are free to negotiate and make decisions on their own, Will a transfer probably take place? Print References Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Regio What is the lowest acceptable transfer price from the perspective of the selling division Lowest acceptable transfer price