(Click the icon ta viow the data). Reod the cequrements Requirement 1. Should transfars be made to division B if there is no unused capacity in division A? ls the market price the correct transfer price? Snow your computations. Bogin by catcutating the gain or boss if bransfors are made to divaion B when there is no unused capachy in division A. Select the formula you will uste and enter the amounts. (Use parentheses or a minses sign for a loss) Should transfers be made to division B if there is no wiused capacily in division A? Select the formile you wil ure to ealculate the correct traneter price Is the markot price the correct tranofer price? capacity exists Should 800 unts be transferred to division B? A1 what transfor price? Should aco unita be trantarted to division B? At what tranafer orice? Mod Wheel, Ine, has two divisions, A and B, that manutacture expensive bicycles. Division A produces the bicycle frame, and division 8 assombles the fest of the bleyele subosisembly has been set at the longrun avempe market price. The following data are avaliable for each division: Ath (Click the ieon to view the data.) Read the cequirements. Should 800 units be transferred to division B? At what transfer price? Requirement 3. Suppose division A quoted a transfer price of $210 for up 10800 unita. What would be the coniribution lo the company as a whole if a transfer. wore made? As manager of division B, would you bo inclined to buy at $210 ? Explain. The contribution to the company as a whole if a transler wire made would be per unit: a so balance, make sure to enter " 0 ' in the appropriote cell) Als managet of division B, would you be inclined to buy at $210 ? a 50 balance, make suro to enfer "0% in the appropriate coll) As maneger of division 8 , would you be inclined to buy at \$2.10? Requirement 4, Suppose the manager of division A has the option of (a) cutting the exfernal price to $242, with the cerfainty that anles wit rise io 2,000 inits, or (0) maintaining the external price of $250 for the 1,200 units and transferring the 800 units to division B at a price that would produce the same operating income for divilabn A. What iransfer price would produce the same operabing income for division A? to that price consutent weth that recomenended by the general guideline sa ithat thie resulting decision woild to desirable for the compony at income whot fo? Selact the formula to calculate the minimum iransfer price, then calculate the minmum fransfer price. Requirements 1. Should transten be made to division if there is re unused capaety in division A? in the market price the correct trensfor phoep Show your ecempitakione monen and sales to the internectiate market are noer 1,200 unds. Assump that for a varieby of rasons, division A wat maintain the 5250 selling perce outuden even if ide capacity exists should 860 unis be translersed to dvitien B? At what transter prica? 1. Suppose division A quoled a tranaler price of $210 for up lo ded unts What would be the conthbetion to the compony as a whole if a inanaler were made? A manager of evisen a, would you be inelined ta bu at sio? Euplain. 4. Suppose the mana jer of civision Af as the option of (ia) oulting the exthmal 800 unts to divsien 8 at a price that woud produce the same uperiaing income for division A. What transfer price would peoduce then same operating compary as a whole