Return to questo Problem 11-25 (Algo) Basic Transfer Pricing (L011-3) Alpha and Geta are divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI. Assume the following Information relative to the two divisions CARE 107.000 195.000 55,000 303,000 55,000 303,000 01.000 195.000 Alpha Division Capacity is units umber of unit now being sold to butaide customers Selling price per unit to outside custasera Variable costa per unit Fixed costa per unit (based on capacity Beta Division Whamber of units needed annually Purchase prior now being paid to As outside supplier 105 67 $ 5 236 63. 39. 44 20 $ 29 205 5 10,800 71,000 20,000 60,000 $ 975 435 "Before any purchase discount Required: 1. Refer to case 1 shown above. Alpha Division can avoid $5 per unit in commissions on any sales to Beta Division - What is Alpha Division's lowest acceptable transfer price? b. What is Beta Division's highest acceptable transfer price? c. What is the range of acceptable transfer prices of any between the two divisions? Will the managers probably agree to a transfer