Canada Products Inc. has a Valve Division that manufactures and sells a standard valve as follows: Capacity in units Selling price to outside customers. Variable costs per unit Fixed costs per unit (based on capacity) 100,000 P 30 P 16 P 9 The company has a Pump Division that could use this valve in one of its pumps. The Pump Division is currently purchasing 10,000 valves per year from an overseas supplier at a cost of P29 per valve. Direction: Answer each question independently. Show your computations to support your answers. 1. Assume that the Valve Division has ample idle capacity to handle of the Pump Division's needs. What is the acceptable range, if any, for the transfer price between the two divisions? 2. Assume that the Valve Division is selling all the valves that it can produce to outside customers. What is the acceptable range, if any, for the transfer price between the two divisions? 3. Assume that the Valve Division is selling all the valves that it can produce to outside customers. Also, P3 in variable expenses can be avoided on transfers within the company due to reduced selling costs. What is the acceptable range, if any, for the transfer price between the two divisions?