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 some company for use in its production process. The managers of the divisions are evaluated based on their divisional profits: Case B Division X: Capacity in units Number of units being sold to autside customers Selling price per unit to outside customers Variable costs per unit Fixed costs per unit (based on capacity) Division Y: Number of units needed for production Purchase price per unit now being paid to an outside supplier 100.ee 122, eze $50 $30 $8 100.000 30.000 $35 520 56 ze,eee $47 20.ece $34 Required: 1-a. Refer to the data in case Asbove. Assume that 52 per unit in variable selling costs can be avoided on intrecompeny sales. Determine the transfer price of the selling division Transfer price 1-b. If the managers are free to negotiate and make decisions on their own, will e transfer take place? Yes No 2.a. Refer to the data in case 3 above. In this case there will be no reduction in variable selling costs on intracompany sales. Determine the transfer price of the selling division Transfer price 2-b. If the managers are free to negotiate and make decisions on their own, will a transfer take place? Yes O No 2.c. What is the range of transfer price the managers of both divisions should agree? The iransfer price can be a lowest al and a highest of