Clinton Corporation has two decentralized divisions, Alpha and Beta. Alpha always has purchased certain units from Beta at $99 per unit. Beta plans to raise the price to $132 per unit, the price it receives from outside customers. As a result, Alpha is considering buying these units from outside suppliers for $99 per unit. Beta's costs follow: Variable costs per unit Annual fixed costs Annual production of these units sold to Alpha $ 93 $160,000 10,000 units Required: a. If Alpha buys from an outside supplier, the facilities that Beta uses to manufacture these units will remain idle. What will be the result if Clinton enforces a transfer price of $132 per unit between Alpha and Beta? Clinton Corporation's contribution margin would b. Suppose Clinton enforces a transfer price of $99 and insists that Beta sell to Alpha before selling to outside customers. Beta currently operates at capacity and can easily sell the units it sells to Alpha on the outside market. What cost will Clinton incur as a result of this policy? Cost Seattle Transit Ltd. operates a local mass transit system. The transit authority is a state governmental agency. It has an agreement with the state government to provide rides to senior citizens for 62 cents per trip. The government will reimburse Seattle Transit for the "cost" of each trip taken by a senior citizen. The regular fare is $3.20 per trip. After analyzing its costs, Seattle Transit figured that, with its operating deficit, the full cost of each ride on the transit system is $5.20. Routes, capacity, and operating costs are unaffected by the number of senior citizens on any route. Required: b. Which price would Seattle Transit prefer? (Round your answer to 2 decimal places.) Price per trip c. Which price would the state government prefer? (Round your answer to 2 decimal places.) Price per trip d. If Seattle Transit provides an average of 162,000 trips for senior citizens in a given month, what is the monthly value of the difference between the prices in full capacity? Difference per month