In each of the cases below, assume Division X has a product that can be sold to outside customers or to Division Y of the same company. The managers of the divisions are evaluated based on their divisional profits. Case A B Division X: Capacity in units 92,000 101,000 Number of units being sold to outside customers 92,000 80,000 Selling price per unit to outside customers $ 59 $ 29 Variable costs per unit $ 23 $ 15 Fixed costs per unit (based on capacity) $ 8 $ 4 Division Y: Number of units needed for production 21,000 21,000 Purchase price per unit now being paid to an outside supplier $ 51 $ 30 Required: 2. Refer to the data in case B above. In this case, there will be no savings in variable selling costs on intracompany sales. a. What is the lowest acceptable transfer price from the perspective of the selling division? b. What is the highest acceptable transfer price from the perspective of the buying division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If the managers are free to negotiate and make decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. Required Required Required 2A 2B 2C What is the range of acceptable transfer prices (if any) between the two divisions? If the managers are free to negotiate and make decisions on their own, will a transfer probably take place? Identify the range of acceptable transfer prices (if any): OThere is not a range of acceptable transfer prices. There is a range of acceptable transfer prices as shown below: Show lessA S Transfer price S Are the managers likely to agree on a transfer price? OYes ONO < Required 2B Required 2C >