Required Information Exercise 11-13 (Algo) Transfer Pricing Sltuations [LO11-3] [The following information applles to the questions displayed below.] In each of the cases below, assume Division X has a product that can be sold elther 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. 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 varlable selling costs can be avolded 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 negotlate and make decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. What is the lowest acceptable transfer price from the perspective of the selling division? Required information Exerclse 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. Exercise 11-13 (Algo) Part 2 Required: 2. Refer to the data in case B above. In this case, there will be no savings in variable selling costs 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 mak decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. What is the lowest acceptable transfer price from the perspective of the selling division