Germano Products, Inc., has a Pump Division that manufactures and sells a number of products, including a standard pump that could be used by another division in the company, the Pool Products Division, in one of its products. Data concerning that pump appear below: Capacity in units Selling price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) 87,500 $ 91 $ 32 $ 38 The Pool Products Division is currently purchasing 23,000 of these pumps per year from an overseas supplier at a cost of $86 per pump. Assume that the Pump Division is selling all of the pumps it can produce to outside customers. Does there exist a transfer price that would make both the Pump and Pool Products Division financially better off than if the Pool Products Division were to continue buying its pumps from the outside supplier? Multiple Choice Yes, both divisions are always better off regardless of whether the selling division has enough Idle capacity to handle all of the buying division's needs. Yes, the minimum transfer price that the selling division should be willing to accept is less than the maximum transfer price that the buying division should be willing to accept o ooo O The answer cannot be determined from the Information that has been provided. No, the minimum transfer price that the selling division should be willing to accept exceeds the maximum transfer price that the buying division should be willing to accept. Division A makes a part with the following characteristics: Production capacity in units Selling price to outside customers Variable cost per unit Total fixed costs 29,700 units $ 22 $ 17 $101,300 Division B, another division of the same company, would like to purchase 14,400 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $20 each. Suppose that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division A refuses to accept the $20 price Internally and Division B continues to buy from the outside supplier, the company as a whole will be: Multiple Choice O worse off by $72,000 each period. O worse off by $28,800 each period. O o oo worse off by $43,200 each period. O worse off by $57,600 each perlod