Company has two divisions. Division A is interested in purchasing 10,000 units from Division Capacity is available for Division B to produce these units. The per-unit market price is $30 per unit with variable cost of $25. The manager of Division A has offered to purchase the units at $22 per unit. In an effort to make this transfer price beneficial for the company as a whole, what is the range of prices tha should be used during negotiations between the two divisions? a. $22 to $30 b. $22 to $25 c. over $30 d. $25 to $30 19. The Darwin Company reports the following information es Direct materials used epreciation on factory equipment 5% 4,70 5,900 10.500 4,200 Indirect labor actory rent 15.60 8,900 Sales salaries expense Office salaries expense Indirect materials Product costs are a. $24,500 b. $30,300 c. $29,200 d. $35,000 20. The primary difference between a static budget and a flexible budget is that a static budget a. is suitable in volatile demand situation while flexible budget is suitable in a stable demand situation b. is concerned only with future acquisitions of fixed assets, whereas a flexible budget is concerned with expenses that vary with sales c. includes only fixed costs, whereas a flexible budget includes only variable costs d is a plan for a single level of production, whereas a flexible budget can be converted to any level of production 21. What cost concept used in applying the cost-plus approach to product pricing includes only total manufacturing costs in the cost amount to which the markup is added? a. variable cost concept b. total cost concept product cost concept d. opportunity cost concept