h each of the cases below, assume that 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. Required: 1-0. Refer to the data in case A above Assume that $2 per unit in variable selling costs can be avoided on intracompany sales Determine the transier price of the selling division. 1-b. If the managers are free to negotiate and make decisions on their own, wil a transfer take place? Yes No 2-a. Refer to the data in case B above. In this case there wil be no reduction in variable selling costs on intracompany sales. Determine the transter paice of the selling division. 1-a. Refer to the data in case A above Assume that $2 per unit in variable selling costs can be avoided on intracompany sales. Determine the transfer price of the selling division. 1.b. If the managers are free to negotiate and make decisions on their own, will a transfer take place? Yes No 2-a. Refer to the data in case B above. In this case there will be no reduction in variable selling costs on intracompany sales. Determine the transfer price of the selling division. 2.b. If the managers are free to negotiate and make decisions on their own, will a transfer take place? Yes No 2-c. What is the range of transfer price the managers of both dwisions should agree