Assume the Smaf Components Division of Martin Manufacturing produces a vidoo card used in the assembly of a variety of electronic producte. (i) (Cick the ison to view addibonal information.) Fead the reguitements. More info Requirement 1. What is the highest acceptablo transfor price for the divisions? The Wighest acceptable transler pnice for the divisions is the Small Components Dvisian's The Compuler Divisien of Martin Manutacturing can use the video card produced by the Small Componerts Divition and is intereated in purchasing the video card in-house tather than buying e from an outside suppler. The Small Components Division has sutficiem excess cupacity with which to make the extra video cards. Because of competion, the market price for this video card is $30 regardless of whether the video card is produced by Martin Manutacturing or 1. What is the highest acceptable transfer price for the divisions? 2. Assuming the transfer price is negotiated between the divisions of the company, what would be the lowest acceptable transfer price? Assume variable selling expenses pertain to outside sales only. 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 2%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overhead decreasing by $3.00 per unit. (Round your answer to the nearest cent.) 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 22%, what transfer price would be used? Assume that the company does not consider fixed manufacturing overhead in setting its internal transfer price in this scenario. (Round your answer to the nearest cent.) 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 103% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $3.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent.)