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Part 1 of 2 Required information Exercise 11-13 (Algo) Transfer Pricing Situations (LO11-3) The following information applies to the questions displayed below) In each of

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Part 1 of 2 Required information Exercise 11-13 (Algo) Transfer Pricing Situations (LO11-3) The following information applies to the questions displayed below) In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits 023 point SO Case ook Division X: Capacity in units Number of units being sold to outside customers Selling price per unit to outside customers Variable costs per unit Fixed costs per unit (based on capacity) Division Y: Number of units needed for production Purchase price per unit now being paid to an outside supplier 100,000 109,000 $ 57 5 20 $ 10 94,000 78,000 $ 28 118 $5 The 16.000 16,000 5.53 5 36 Exercise 11-13 (Algo) Part 1 Required: 1. Refer to the data in case A above. Assume in this case that $2 per unit in variable selling costs can be avoided on intracompany sales a. What is the lowest acceptable transfer price from the perspective of the selling division? h What is the hichest accontable transfer bric from the perspective of the buving division? 20 Exercise 11-13 (Algo) Part 1 Part 1 of 2 Required: 1. Refer to the data in case A above. Assume in this case that $2 per unit in variable selling costs can be avoided on intracompany sales. a. What is the lowest acceptable transfer price from the perspective of the selling division? b. What is the highest acceptable transfer price from the perspective of the buying division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If the managers are free to negotiate and make decisions on their own, will a transfer probably take place? 0.23 boints 02:34:50 Complete this question by entering your answers in the tabs below. DOON Reg 1A Reg 1B Req1C What is the lowest acceptable transfer price from the perspective of the selling division? References Lowest acceptable transfer price ETA Reg 10 > Exercise 11-13 (Algo) Part 1 Required: 1. Refer to the data in case A above. Assume in this case that $2 per unit in variable selling costs can be avoided on intracompany sales. a. What is the lowest acceptable transfer price from the perspective of the selling division? b. What is the highest acceptable transfer price from the perspective of the buying division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If the managers are free to negotiate and make decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 10 What is the highest acceptable transfer price from the perspective of the buying division? Highost acceptable transfer price Req10 >

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