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Saved Y of the same company for use in its production process. The managers of the divisions divisional profits. Case A B Division X: Capacity

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Saved Y of the same company for use in its production process. The managers of the divisions divisional profits. Case A B 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) Division Y: Number of units needed for production Purchase price per unit now being paid to an outside supplier 109,000 107,000 109,000 86,000 59 $ 26 $ 20 $ 13 $ 8 $ 5 21,000 21,000 $ 54 $ 26 Exercise 11-13 (Algo) Part 1 Required: 1. Refer to tie data in case A above. Assume in this case that $3 per unit in variable selling cost 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 mana decisions on their own, will a transfer probably take place

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