APPLY THE CONCEPTS: Determining benets of negotiated transfer price Assume that Selling Division and Buying Division are both owned by Overall Corporation. Selling Division sells a product that is used by Buying Division and outside customers. Selling Division has 20,000 units of excess capacity. Selling Division currently sells the product for $65 per unit and Buying Division currently buys 20,000 units of the product from an outside source for $65 per unit. Variable costs of the product are $13, of which $3.25 is the cost of selling the product to an outside customer: \\/