Question 29 Arian International Corporation has two divisions, Division A and Division B. Division A produces a motor that sells for $95 per unit, with the following costs based on its capacity of 183,000 units: Direct materials $29 Direct labour 24 Variable overhead 7 Fixed overhead 8 Division A is operating at 70% of normal capacity and Division B is purchasing 22,500 units of the same component from an outside supplier for $89 per unit. Calculate the benefit, if any, to Division A in selling to Division B the 22,500 units at the outside supplier's price. Benefit Calculate the lowest price Division A would be willing to accept. Lowest prices If Division A is operating at full capacity, what would be the lowest transfer price that it is willing to accept? Lowest transfer price $