Exercise 11-13 (Algo) Transfer Pricing Situations [LO11-3] [The following information applies to the questions displayed below.] In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits. Division X: Case A B Capacity in units Number of units being sold to outside customers Selling price per unit to outside customers 101,000 101,000 103,000 78,000 $ 56 $ 34 Variable costs per unit $ 21 $ 19 Fixed costs per unit (based on capacity) $ 9 $ 6 Division Y: Number of units needed for production 25,000 25,000 Purchase price per unit now being paid to an outside supplier $ 51 $ 38