Division One of Peter Senen Company is currently operating at 70% of capacity. It produces a single product and sells all its production to outside customers for P70 per unit. Variable costs is P30 per unit and fixed costs is P20 per units at the current production level. Division 2, which currently buys the same product from an outside supplier for P65 per unit, would like to buy the product from Division One. Division One will use one-half of its idle capacity if it decides to provide the requirements of Division 2. What is the maximum price that Division 2 will be willing to pay for the product if it will be purchased internally? ND C P50 d. P65 b. P30 a. P70 com Combate Cabinet Company had the following accounting data per cabinet in the Construction Division. Direct materials P150 Direct labor 80 Variable manufacturing overhead 50 Fixed manufacturing overhead 60 Variable selling expenses 40 Fixed selling expenses 20 The cabinets are generally transferred internally from the Construction Division to Finishing Division. They are also sold externally for P500 per cabinet. The minimum profit level accepted by the company is a mark- up of 20% What would be the transfer price if Combate's Cabinet Company uses full cost plus the desired mark-up? O c. P384 O d. P336 O a. P408 O b. P504