Question 2 10 Points Muharraq Co, has Division A that manufactures and sells a number of parts including Part XYZ. Data concerning Part XYZ appear below: 20.000 Capacity in units FALL15 X T S 128 (Part XCZ sppear Capeity in une 70,000 Selling price to outside customers $110 Variable cost per unit $75 Fixed cost per unit (based on capacity) $25 The company has Division B that could use Part XYZ in one of its products. Division is currently purchasing 15.000 of Part XYZ.per year from an overseas supplier at a cost of $109 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 divisions? [4 marks] b. Assume again that Division A is selling all of Part XYZ it can produce to outside customers. Also assume that $3 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 15.000 units to Division B for $125 and that Division B refuses this price. What will be the loss in potential profits for Division A7 [2 marks] K First Last > Questions Filter (5) Yale Grading Mam p Additional Information Refresh the assessment to view v you submit an attempt