bring 2020 online-215 [Read-Only] - Word OUT REFERENCES MAILINGS TABLE TOOLS REVIEW VIEW DESIGN LAYOUT another user Save As 8. Division produces a component that is used by Division B. Division S's costs of manufacturing the component is: Direct materials $30; Direct labor $8: Variable overhead $10; Fixed overhead $12 (based on a practical volume of 250,000 components). Division S also incurs these costs: fixed selling & administrative $1,200,000, and variable selling SA/unit. Division S expects to sell only 200,000 components next year. The variable selling expenses are avoidable if the component is sold internally Division B has been buying the same component from an external supplier for $80 each. It expects to 40,000 units of the component next year. The manager of Division B has offered to buy 40,000 units from Division S for $S6 each. The maximum minimum transfer price should be respectively a $80.48 c. $48.48 b. $60/50 d $38/30 9. Refer to question 8. Suppose Divisions S and B agree on a transfer price of $56. What is the benefit to cachion.resectie ITED STATES mother user Save As + 1 5. 9. Refer to question 8. Suppose Divisions S and B agree on a transfer price of $56. What is the benefit to each division respectively? a $320,000/$960,000 c. $960,000/$320,000 b. $1,280,000/$0 d. $0/$1,280,000 10. Refer to question 8. If S is at full capacity, the transfer price should be: a. Between $30 and $80 c. $30 b. $80 d. $60