Division X makes a part with the following characteristics: Production capacity Selling price to outside customers Variable cost per unit Fixed costs, total 25,000 units $ 18 $ 11 $ 100,000 Division Y of the same company would like to purchase 10,000 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $17 each. Suppose Division X has ample excess capacity to handle all of Division Y's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division X refuses to accept the $17 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be: Multiple Choice worse off by $70,000 each period. better off by $10,000 each period. worse off by $60,000 each period. worse off by $20,000 each period. better off by $60,000 each period. Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: 40 Selling price to outside customers Variable cost per unit Total fixed costs Capacity in units $ $ 30 $10,000 20,000 Division B of the same company would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made by an outside company for $38 per unit and would substitute the part made by Division A. Division B requires 5,000 units of the part each period. Division A has ample capacity to produce the units for Division B without any increase in fixed costs and without cutting into sales to outside customers. If Division A sells to Division B rather than to outside customers, the variable cost be unit would be $1 lower. What is the lowest acceptable transfer price Division A should accept? Multiple Choice $40 $38 $30 $29 $10