L MITUTumiure D My Cart Clutch Masters FX1. Men's Journeymen 9-200 Saved Exercise 9-20B Determining transfer prices LO C2 The trailer division of Bexter Bicycles makes bike trailers that attach to bicycles ond con cary children or cargo. The tralers have a retail price of $101 each. Each traler incurs $42 of varieble manufecturing costs. The trailer division has capacty for 21.000 trailers per vear and incurs foved costs of $460,000 per year Required: 1. Assume the assembly division of Baxter Bicycles wents to buy 4,.700 treilers per vear from the treier division If the traler division con sell all of the tralers it manufactures to outs de customers, what price should be used on transfors betwaen Baxter Bicycless divisions? 2. Assume the traller divislon currently only sells 9,600 tralers to cutside customors, and the assemoly division wants to buy 4,700 trallers per year from the trailer division. What Is the range of ecceptable prices that could be used on transfers between Baxter Bicycles's divisions? Transfer price per trailer but not more then Transfar price per traler wil be at leasth ces