Division A makes a part with the following characteristics: 3 Production capacity in units Selling price to outside customers Variable cost per unit Total fixed costs 30,800 units $ 23 15 $ 105,200 Division B, another division of the same company, would like to purchase 16,100 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $19 each. Suppose that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division A refuses to accept the $19 price internally and Division B continues to buy from the outside supplier, the company as a whole will be: Multiple Choice worse off by $89,800 each period. worse off by $10,100 each period. worse off by $64,400 each period. worse off by $12,800 each period. 4 Wetherald Products, Inc., has a Pump Division that manufactures and sells a number of products, including a standard pump that could be used by another division in the company, the Pool Products Division, in one of its products. Data concerning that pump appear below: 96 Capacity in units Selling price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) 58,500 $ $ 60 $ 18 The Pool Products Division is currently purchasing 4,700 of these pumps per year from an overseas supplier at a cost of $81 per pump. Assume that the Pump Division is selling all of the pumps it can produce to outside customers. What should be the minimum acceptable transfer price for the pumps from the standpoint of the Pump Division? Multiple Choice $78 per unit $81 per unit $96 per unit $60 per unit