Exercise 15-28 Evaluate Transfer Pricing System (LO 15-2) San Jose Company operates a Manufacturing Division and an Assembly Division. Both divisions are evaluated as pront centers, Assembly buys components from Manufacturing and assembles them for sale Manufacturing sells many components to third parties in addition to Assembly Selected data from the two operations follow Manufacturing Assembly Capacity (ur) 412.000 212,000 Sales price 1. MO Variable costs $ 220 $ 504 Fixed costs $40,120,000 $24.120.000 $ For Manufacturing, this is the price to third parties. For Assembly, this does not include the transfer price paid to Manufacturing, Required: Current production levels in Manufacturing wro 212,000 units. Assembly requests an additional 62,000 units to produce a special order. What trpnsfer price would you recommend? Optimal transfer price b. Suppose Manufacturing is operating at full capacity. What transfer price would you recommend? Transfer price c. Suppose Manufacturing is operating at 386,000 units. What transfer price would you recommend? (Round your answer to 2 decimal places.) Transfer price per unit Exercise 15-24 Evaluate Transfer Pricing System (2015-2, 3) Seattle Trans Lad operates a local mass transit system. The transit authority is a state governmental agency. It has an agreement with the state government to provide rides to senior citizens for 67 cents per trip. The government will reimburse Seate Transit for the cost of each trip taken by a senior citizen The most $3.70 per tre. Ato analyzing costs, Seatie Transit figured that, with its operating defct, he al cost of each ride on the transit system is $5.70. Routes, capacity, and operating costs are unafected by the number of senior citizens on any route Required: b. Which price would Seattle Transit prefer? (Round your answer to 2 decimal places) e. Which price would the inte government prater? (Round your answer to 2 decimal places) a. Seattle Transit provides an werage of 167,000 trips for senior citizens in a given month, what is the monthly value of the diference between the prices in full capacity