Required information Exercise 11A-3 Transfer Pricing Situations [LO11-5] 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 productlon process. The managers of the divisions are evaluated based on their divisional profits Case 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) 103,000 103,000 98,000 79,000 55 33 20 $ 19 $ 8 $ 5 Division Y: Number of units needed for production Purchase price per unit now being paid to an outside supplier 19,000 19,000 50 $ 38 Exercise 11A-3 Part 2 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 make decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. Req 2C Req 2A Req 2B What is the lowest acceptable transfer price from the perspective of the selling division? Lowest acceptable transfer price Rea 2A Req 2B