Exercise 22-19 (Algo) Determining transfer prices LO C1 The Traller division of Baxter Bicycles makes bike trallers that attach to bicycles and can carry children or cargo. The trailers have a market price of $90 each. Each trailer incurs $42 of variable manufacturing costs. The Traller division has capacity for 22,000 trailers per year and has fixed costs of $450,000 per year. 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,800 trailers per year from the Trailer division. If the Traller division can sell all of the trailers it manufactures to outside customers (and has no excess capacity), what price should be used on transfers between divisions? 2. Assume the Trailer division currently only sells 10,400 trailers to outside customers and has excess capacity. The Assembly division wants to buy 5,800 trallers per year from the Trailer division. What is the range of acceptable prices on transfers between divisions? (1) Use the information below to compute the days in the cash conversion cycle for each company. (2) Which company is more effective at managing cash based on this measure? Complete this question by entering your answers in the tabs below. Use the information below to compute the number of days in the cash conversion cycle for each company. Complete this question by entering your answers in the tabs below. Which company is more effective at managing cash