ILO 19-4] 19-32 Transfer Pricing: Decision Making Truball Inc., which manufactures sports equipment, con- several operating divisions. Division A has decided to go outside the company to buy sindivision B informed it that the division's selling price for the same materials would increase to $200. Information for division A and division B follows: Outside price for materials Division A's annual purchases Division B's variable costs per unit Division B's fixed costs, per year Division B's capacity utilization $150 10,000 units $140 $1,250,000 100% Required I. wil the company benefit if division A purchases outside the company? Asume that division B 2. Assume that division B can save $200,000 in fixed costs if it does not manufacture the material for 3. Assume the situation in requirement 1. If the outside market value for the materials drops $20, 19-33 Transfer Pricing: Decision Making Using the information from requirement 1 cannot sell its materials to outside buyers. division A. Should division A purchase from the outside market? should division A buy from the outside? Explain. Just this part LO 19-4) 19-32, assume that division B could sell 10,000 units outside for $215 per unit with variabl marketing costs of $10. Should division B sell outside or to division A? Explain