The Southern Division of Barstol Company makes and sells a single product, which is a part used in manufacturing trucks. The annual production capacity is 48,000 units and the variable cost of each unit is $47. Presently the Southern Division sells 45,000 units per year to outside customers at $61 per unit. The Northern Division of Barstol Company would like to buy 24,000 units a year from Southern to use in its production. There would be no savings in variable costs from transferring the units internally rather than selling them externally. The lowest acceptable transfer price from the standpoint of the Southern Division should be closest to: Multiple Choice $59.25 per unit O O $26.25 per unit O $61.00 per unit $47.00 per unit Ganus Products, Incorporated, has a Relay Division that manufactures and sells a number of products, including a standard relay that could be used by another division in the company, the Electronics Division, in one of its products. Data concerning that relay appear below: Capacity in units Selling price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) 77,500 $ 61 $ 18 $ 34 a cost The Electronics Division is currently purchasing 10,850 of these relays per year from an overseas supplier of $58 per relay. Assume that the Relay Division is selling all of the relays it can produce to outside customers. Also assume that $7 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs. Does there exist a transfer price that would make both the Relay and Electronics Division financially better off than if the Electronics Division were to continue buying its relays from the outside supplier? Multiple Choice Yes, the minimum transfer price that the selling division should be willing to accept is less than the maximum transfer price that the buying division would accept. Both divisions would be financially better off if the transfers were to take place. No, the selling division's price to outside customers is higher than the price that the buying division has to pay its outside supplier. Yes, both divisions are always better off regardless of whether the selling division has enough idle capacity to handle all of the buying division's needs. The answer cannot be determined from the information that has been provided