Managerial Accountants: Consider the independent cases 1-3 below, assume that Segment J has a product that can be sold either to Segment K of the same company or to outside customers. The managers of both divisions are evaluated based on their own division's return on investment (ROI). The managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated. Treat each case independently Case Segment 53,000 300,000 105,000 192,000 Capacity in units Number of units now being sold to outside customers Selling price per unit to outside customers Variable costs per unit Fixed costs per unit (based on capacity) 3,000 300,000 81,000 192,000 $48 $32 $8 $96 $59 $22 $44 $21 S66 $42 S24 SegmentK 64,000 Number of units needed annually Purchase price now being paid to an outside supplier* 0,500 73,000 9,000 $87 S66 *Before any purch asediscount. Required 1. Refer to case 1. A study has indicated that Segment J can avoid $5 per unit in variable costs on any sales to Segment K. a. What is the minimum transfer price for Segment J? (Omit the "$" sign in your response.) Minimum transfer price b. What is the maximum transfer price for Segment K? (Omit the "$" sign in your response.) Maximum transfer price c. Will the managers agree to a transfer? 0 O Yes