Remaining Time: 1 hour, 58 minutes, 15 seconds Question Completion Statu Click Submit to complete this assessment. 10 points Question 5 Muhama Ce, hae Division A that manufactures and sells a number of parts, including Part XYZ. Data concerning Part XYZ appear below: Capacity in units 70,000 Selling price to outside customers $110 $75 Variable cost per unit Fixed cost per welt (based on capacity) $25 The company has Divist could use Part XYZ in one of its products. Division B 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] transfers within the company reduced shipping a & Asume 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 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 A? [2 marks] for the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) B IUS Paragraph Arial V 10pt Y EE AV I. XQ E XX, & 5 v 12 38 - BO B Question 5 of 5 See Mwe ( O WORDS POWERED BY TIM