collyer products Inc. has a Value Division that manufactures and sells a standard value as follows. For question 1, 2 and 3 please write , , in each box two and three.

3 Collyer Products Inc has a Valve Division that manufactures and sells a standard valve as follows 180.000 S 24 S 17 Capacity in units Selling price to outside customers on the intermediate market Variable costs per unit Fixed costs per unit (based on capacity) The company has a Pump Dhision that could use this valve in the manufacture of one of its pumps. The Pump Division is currently purchasing 18,000 valves per year from an overseas supplier at a cost of $23 per vave Required 1. Assume that the Valve Division has ample idle capacity to handle all of the Pump Diisions needs What is the acceptable range, if amy, for the transfer price between the two divisions? 2. Assume that the Valve Division is selling all that it can produce to outside customers on the intermediate market what is the acceptable fange if any, for the transfer price between the two divisions? 3. Assume again that the Valve Division is selling all that it can produce to outside customers on the intermediate market. Also assume that 54 in variable expenses can be avoided on transfers within the company, due to reduced selling costs What is the acceptable range, fanfor the transfer price between the two diisions? 4. Assume the Pump Division needs 32,000 special high-pressure valves per year. The Valve Division's ariable costs to manufacture and ship the special valve would be $12 per unit. To produce these special valves, the Valve Division would have to reduce its production and sales of regular valves from 180,000 units per year to 100,000 units per year As far as the Valve Dvsson is concerned, the lowest acceptable transfer price? (Round your answer to 2 decimal places.)