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The Post Division of Awal Company produces basic posts, which can be sold to outside customers or sold to the Lamp Division of Awal Company.

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The Post Division of Awal Company produces basic posts, which can be sold to outside customers or sold to the Lamp Division of Awal Company. The following data are available for last year's activities of the Post Division: The Post Division Capacity in units 300.000 posts Selling price per port to outside customers $1.75 Variable couts per post 50 90 Fixed costs, total $150,000 The Lamp Dension Number of Units needed 25,000 posts Purchase Price from outside Suppliers SI5 Required: 1 Suppose that the Post Division sells to outside customers 270,000 units. What is the lowest transfer price that would so reduce the profit of the Post Divo And what is the range of transfer 2. Suppose that the Post Division sells to outside customers 300,000 units and the cost of packing and shipping the posts for outside customer 50 per unit these packing and shipping costs would not have to be incurred on sales of the posts to Lamp Division What is the lowest transfer price that would not reduce the profits of the Post Division? And what is the range of transfer

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