The following information applies to the questions displayed below In each of the cases below, assume that Division X has a product that can be sold elther to outside customers or to DIvision Y of the same company for use In Its production 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) 93,000 93,000 56 24 91,000 70,000 25 17 Division Y Number of units needed for production Purchase price per unit now being paid to an outside supplier 21,000 53 21,000 34 Required 1-a. Refer to the data in case A above. Assume in this case that $1 per unit in variable selling costs can be avoided on intracompany sales. Determine the transfer price of the selling division. Transfer 1-b. If the managers are free to negotiate and make decisions on their own, will a transfer take place? O No O Yes 2-a. Refer to the data in case B above. In this case, there will be no savings in variable selling costs on intracompany sales. Determine the transfer price of the selling division Transfer 2-b. If the managers are free to negotiate and make decisions on their own, will a transfer take place? O No O Yes 2-c. What is the range of transfer price the managers of both divisions should agree? he lowest transfer price would be and the highest transfer price would be