Soved Tulip Company is made up of two divisions: A and B Division A produces a widget that Division Buses in the production of its product Variable cost per widget is $0.85 full cost is $120. Comparable widgets sell on the open market for $170 each. Division A can produce up to 160 million widgets per year but is currently operating at only 50 percent capacity. Division B expects to use 80,000 widgets in the current year Required: 1. Determine the minimum and maximum transfer prices. (Enter your answers to 2 decimal places.) Minimum Transfer Price Mecmum Transfer Price 2. Calculate Tulip Company's total benefit of having the widgets transferred between these divisions Total Burelt 5 of 6 ! Next > se to search o c 3 O > 2 3 % 5 4 & 7 6 8 9 W E R Y U A S D F G . J K 3. If the transfer price is set at 5.85 per unit, determine how much profit Division A will make on the transfer Determine how much Division B will save by not purchasing the widgets on the open market (Round your answers to 2 decimal places.) Division A Profit Division B Savings per una 4. If the transfer price is set at $170 per unit, determine how much profit Division A will make on the transfer. Determine how much Division B will save by not purchasing the widgets on the open market. (Round your answers to 2 decimal places.) per Don A Pro Oon B Savings Prov 56 !!! Next > to search O c G Rio 2 $ 4 3 % 5 6 & 7 8 9 Q W E 20 T Y U . S D F G H K Z X C B Division Saving 5. What transfer price would you recommend to split the difference? (Round your answer to 3 decimal places.) May Beneficial Transfer Price e to search o 3. M C 2 3 4 5 8 7 6 8 9 a w E R o P S D F G H IKL N X V B N M All May