Case
	A	B
Division X:
Capacity in units	92,000	101,000
Number of units being sold to outside customers	92,000	81,000
Selling price per unit to outside customers	$58	$33
Variable costs per unit	$25	$17
Fixed costs per unit (based on capacity)	$7	$5
Division Y:
Number of units needed for production	20,000	20,000
Purchase price per unit now being paid to an outside supplier	$53	$34

.	Refer to the data in case A above. Assume that $3 per unit in variable selling costs can be avoided on intracompany sales. Variable cost per unit Less: Avoidable cost Total contribution margin on lost sales No. of units transferred Transfer price