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Muharraq Co., has Division A that manufactures mul sells amber of parts, including Part XYZ Datang Put Y Capacity in units Selling price to outside

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Muharraq Co., has Division A that manufactures mul sells amber of parts, including Part XYZ Datang Put Y Capacity in units Selling price to outside customers Variable cost per wit Fixed cost per unit (based on capacity) 10000 $116 5.35 125 The company has Division B that could use Part XYZ in one of its products. Division B is currently pashasing 15,000 of Put XVZ pes yeur ha Required: a. Assume that Division A is selling all of Part XYZ it can produce to outside customers. What is the acceptabis rug if say, for the water price (4) whand dipping n vilang m b. Assume again that Division A is selling all of Part XYZ it can produce to outside customers. Also assume that $3 in variable expens beden waar we 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 15,000 units to Division B for $125 and that Division refines this price. What will be de boxa in postantial parties for Derinan.A? (2 marki) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) Ev 2 QF 45 V 10pt Arial BIUS Paragraph L X0 BE 10 @0: 2 V 200 T T 15 99 B 15

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