k Tulip Company is made up of two divisions: A and B. Division A produces a widget that Division B uses in the production of its product. Variable cost per widget is $0.85; full cost is $1.20. Comparable widgets sell on the open market for $1.70 each. Division A can produce up to 1.60 million widgets per year but is currently operating at only 50 percent capacity. Division B expects to use 80,000 widgets in the current year. Required: 1. Determine the minimum and maximum transfer prices. 2. Calculate Tulip Company's total benefit of having the widgets transferred between these divisions. 3. If the transfer price is set at $0.85 per unit, determine how much profit Division A will make on the transfer. Determine how much Division B will save by not purchasing the widgets on the open market. 4. If the transfer price is set at $1.70 per unit, determine how much profit Division A will make on the transfer. Determine how much Division B will save by not purchasing the widgets on the open market. t 5. What transfer price would you recommend to split the difference? nces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 What transfer price would you recommend to split the difference? (Round your answer to 3 decimal places.) Mutually Beneficial Transfer Price $ 1.350 < Required 4 Resumed 6