In 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 ofthe divisions are evaluated based on their divisional prots: Case A B Division X: Capacity in units 153,333 156,333 Number of units being sold to outside customers 153,333 127,833 Selling price per unit to outside customers $ 55 $ 39 Variable costs per unit :5 36 $ 19 Fixed costs per unit (based on capacity) $ 9 $ 7 Division Y: Number of units needed 'For production 23,333 23,883 Purchase price per unit no.I being paid to an outside supplier $ 51 $ 38 Required: 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? 0 Yes 0 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? 0 Yes 0 No 2-c. What is the range oftransfer price the managers of both divisions should agree