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In each of the cases below.assume that Processor Division has a product that can be sold either to outside customers or to the Graphics Card Division of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits: Processor Division: Capacity in units Number of units being sold to outside customers Selling price per unit to outside customers Variable costs per unit Fixed costs per unit (based on capacity) Graphics Card Division Number of units needed for production Purchase price per unit now being paid to an outside supplier 268,000 260,000 200,00 235,000 $49 $31 $35 58 $6 25,000 25,000 $61 548 Required: 1-a. Refer to the data in case A above. Assume that $1 per unit in variable selling costs can be avoided on intracompany sales Determine the transfer price of the selling division Transtornice 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? O Yes O NO 2-c. What is the range of transfer price the managers of both divisions should agree? The transfor pnce can bo a lowost of and a highest of