E. $1.80; Mantra Quin Limited has a number of divisions. One division. Style, makes zippers that are used in the manufacture of boots. Another division. Leather Stuff, makes boots that use the zippers and needs 90,000 zippers per year. Style incurs the following costs for one zipper: Direct materials $0.23 Direct labour $0.20 Variable overhead $0.95 Fixed overhead $1.32 Total $2.70 Quin has capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers next year. Leather Stuff currently buys zippers from an outside supplier for $3.50 each (the same price that Style receives). 26. Assume that Quin allows negotiated transfer pricing. What is the floor of the bargaining range and which division sets it? $3.50; Style $2.70; Leather Stuff $2.70; Style $1.38; Leather Stuff $1.38; Style 27. Assume that Style and Leather Stuff have agreed on a transfer price of $3.25. What are the total cost savings for Leather Stuff? $22,500 $315,000 $292,500 $69,000 $81,000 28. Assume that Style and Leather Stuff have agreed on a transfer price of $3.25. What is the total benefit for Style? $243,000 $292,500 $168,300 $69,000 $81,000