Muharraq Co., has Division A that manufactures and sells amber of parts, incholing Fan XYZ Datang XYZp Capacity in uni Selling price to outside customers Variable cost per unit 391 Fixed cost per unit (based on capacity) 155 The company ban Division B that could use Pars XYZ in one of its products. Division B is curly purchg 2000 Pan XYZ pe s part. Required: a. Assume that Division A is selling all of Part XYZ it can produce to outside customers. What is the acceptable penge if say the the trand price beste b. Assume again that Division A is selling all of Part XYZ it can produce to outside customers. Also inse that 14 in vacible expes cas heddiw temp due to reduced shipping and selling costs. What is the acceptable range, if any, for the transfer price between the two dvi (4 marks) c. Based on requirement (a), assume Division A offers to sell 20,000 units to Division B for $115 sad that Devision B retses des pria What will be the ins in postal poste Division A? [2 marks] For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac) A 2 IX 000 M E 10pt Arial BIVS Paragraph 5100 20 6 DELL Required: a. Assume that Division A is selling all of Part XYZ it can produce to outside customers. What is the acceptable range, it way for the trend price b. Assume again that Division A is selling all of Part XYZ it can produce to outside customers. Above that 54 is able expenses can be and due to reduced shipping and selling costs. What is the acceptable range, if any, for the transfer price bewon for two divisions? (4 marks] the & nobil wh c. Based on requirement (a), assunse Division A offers to sell 20,000 units to Division for $115 and at Dion Blases this prae What will be the pe Division A? [2 marks] For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac BIVS Paragraph Arial 10pt EE 2- LXO39- 44 A OX ME S P DELL 3 6 N N D Muharraq Co., has Division A that manufactures and sells a number of parts, including Part XYZ. Data concerning Part XYZ.appear below Capacity in units Selling price to outside customers Variable cost per unit 55.000 5.95 $55 5:20 Fixed cost per unit (based on capacity) The company has Division B that could use Part XYZ in one of its products. Division B is currently purchuning 20,000 of Part XYZ per year from an overwas supplies at s com of 553 per part. Required: a. Assume 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 div? (4 marks the compa b. Assume again that Division A is selling all of Part XYZ it can produce to outside customers. Also assume that 54 in variable expenses can be avoided on transfers within due to reduced shipping and selling costs. What is the acceptable range, if any, for the transfer price between the two divisions? (4 marks) c. 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 pountial pentin Division A? [2 marks] For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). www AIX00 Arial 10pt BIUS Paragraph 111 711 con pes an The company has Division B that could use Part XYZ in one of its products. Division B is currently purchasing 20,000 of Par XYZ per your ton appler att st 13 per part. Required: a. Assume that Division A is selling all of Part XYZ it can produce to outside customers. What is the acceptable range, if any, for the trander prace betwee di 14 mado] b. Assume again that Division A is selling all of Part XYZ it can produce to outside customers. Also msume that $4 in variable expenses can be avoided on traders within the company due to reduced shipping and selling costs. What is the acceptable range, if any, for the transfer price between the two divnions? (4 marks] c. Based on requirement (a), assume Division A offers to sell 20,000 units to Division B for $115 and that Devosion B refuses this price. What will be the las in potential profs for Division A? [2 marks] For the toolbar, press ALT-F10 (PC) or ALT+FN+F10 (Mac) V Arial *** 10pt EY S LIXO Q I Paragraph US B 52 FREE S + 8.880 CBBC (6) DELL xx " 1120