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Moving to another question will save this repor Q Question 2 10 points Muharraq Co, has Division A that manufactures and sells a member of

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Moving to another question will save this repor Q Question 2 10 points Muharraq Co, has Division A that manufactures and sells a member of parts, including Part XYZ Data concening Part XYZ appent below Capacity in units $5,000 Selling price to outside citamers Variable cost per unit 191 1:55 Fixed cont per unit (based on capacity) 1:20 The company has Division B that could use Part XYZ in one of its products. Division B is currently purchasing 20,000 of Part XYZ per year from an overas supplier at a cost of 33 per part Required: a. Acume that Division A is selling all of Part XYZ it can produce to outside customers. What is the acceptable range, if any, for the transfer price between the two divisions? (4 marks] b. Assume again that Division A is selling all of Part XYZ it can produce to outude customers. Also assume that 54 in variable expenses can be avoided on transfers within the company dar to reduced shipping and selling costs. What is the acceptable range, if any, for the transfer price between the two divisions? [4 marks] e. Based on requirement (a), assume Division A offers to sell 20,000 units to Division B for $115 and that Division B refuses this price. What will be the loss in potential profits for Division A 12 marks) For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac) *** A 1952 24 I. X E- 10pt Arial M V IVS Paragraph B res and sells a number of parts, including Part XYZ. Data concerning Part XYZ appear below: Capacity in units 55,000 Selling price to outside customers Variable cost per unit $95 $55 Fixed cost per unit (based on capacity) $20 t XYZ in one of its products. Division B is currently purchasing 20,000 of Part XYZ per year from an overseas supplie un to outside customers. What is the acceptable range, if any, for the transfer price between the two

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