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Muharroq Ca, bas Division A that manufactures and sells amber of parts, including Part XYZ. Dels concerning Part XYZ appet be 10 points Capacity in

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Muharroq Ca, bas Division A that manufactures and sells amber of parts, including Part XYZ. Dels concerning Part XYZ appet be 10 points Capacity in units Selling price to outside comers Variable cost per unit 55,000 $95 $35 Fixed cost per unit (based on capacity) 5:20 The company has Division B that could use Part XVZ in one of its products. Division B is currently purchasing 20.000 of Pan XYZ per year from an overseas supplier at a cost of V93 per part Required: a. Assume that Division A is selling all of Part XYZ it can produce to outude customers. What is the acceptable range, if say, for the transfer price between the two divisions? (4 marks) b. Assume again that Division A is selling all of Part XY2 it can produce to outside customers. Also assume that $4 in variable expenses can be avoided on transfers within the company 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 potemed profits for Division A? [2 marks] For the toolbar, press ALT F10 (PC) or ALT FN F10 (Mac). % *** B I US Paragraph V Arial 10pt 00 H 1.0 $ o

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