E9.26 (LO 6) Alpha International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $75 per unit, with the following costs based on its capacity of 200,000 units: Determine minimum transfer price. Direct materials $25 Direct labour 15 Variable overhead 5 Fixed overhead 10 Beta is operating at 75% of normal capacity and gamma is purchasing 15,000 units of the same component from an outside supplier for $70 per unit. Instructions 1. Assume Beta is at full capacity and the following transfer prices , calculate the effects: Show calculations Selling Price $45 $75 $100 Gamma Gain/Loss 10 110 Beta Gain/Loss Alpha Gain/Loss At what price does a transfer make sense for Alpha? Explain. 2. Assume Beta has idle capacity and the following transfer prices, calculate the effects: Show calculations Selling Price $10 $65 $100 Gamma Gain/Loss Beta Gain/Loss Alpha Gain/Loss At what price does a transfer make sense for Alpha? Explain