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any help would be greatly appreciated. Required information Exercise 11-13 (Algo) Transfer Pricing Situations [LO11-3) The following information applies to the questions displayed below, In

any help would be greatly appreciated.

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Required information Exercise 11-13 (Algo) Transfer Pricing Situations [LO11-3) 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 either to outside customers of 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 Division : Capacity in units 557080 107,008 Musher of units being sold to outside customers 93,904 Selling price per unit to outside customers $ 51 $ 20 Warlable costs per walt $ 14 Fixed costs per unit (based on capacity) 15 Division Wi Number of units needed for production Purchase price per unit now being paid to an outside Supplier 147 $ 28 Exercise 11-13 (Algo) Part 1 Required: 1. Refer to the data in case A above. Assume in this case that $4 per unit in veriable 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

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