structure.com/courses/416265/quizzes/970091/take Use the following information for questions 11 through 13 The Western Division of Sportswear Company makes socks and sells them in its region for $6 per unit. (A unit is a pair of socks.) Socks have per unit variable manufacturing costs of $2.50 The Eastern Division of Sportswear Co, is experiencing new demand in its markets (where prices are somewhat lower). It cannot meet this demand from its own production facilities and would like to buy 15,000 pairs of socks from Western. Eastern will then sell the socks to its customers at a price of $5.75, and will incur $0.75 per unit of variable selling costs. The Eastern Division has no other source for these socks The Western Division has excess capacity (even at normal volume) and it can produce the 15,000 units without interfering with its current outside sales or requiring additional fixed resources. Both divisions are profit centers and are free to trade with each other or not, as they choose. 11. The maximum transfer price per pair of socks that the Eastern Division would be willing to pay the Western Division for these socks is Question 12 4 pts 12. Now suppose that the Western Division has an opportunity to use its excess capacity to produce 15,000 headbands. If it makes these, then it cannot make any socks for the Eastern Division. Western's incremental (variable) cost of producing and selling headbands is $3.65 per unit and they are sold to external customers for $5.25 per unit. If the transfer price per pair of socks is at $4.00, then which product will the Western Division want to make in order to maximize its own profit? O Socks for the Eastern Division Headbands for the external market Question 13 4 pts 2 Co tv