The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $91 each. Each trailer incurs $37 of variable manufacturing costs. The Trailer division has capacity for 29,000 trailers per year and incurs fixed costs of $430,000 per year. Required: 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,300 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles's divisions? 2. Assume the Trailer division currently only sells 10,400 Trailers to outside customers, and the Assembly division wants to buy 5,300 trailers per year from the Trailer division. What is the range of acceptable prices that could be used on transfers between Baxter Bicycles's divisions? 1. 2. Transfer price per trailer Transfer price per trailer will be at least but not more than Heart & Home Properties is developing a subdivision that includes 420 home lots. The 220 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 200 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $40,000 and for each Hilltop lot is $98,000. The developer acquired the land for $1,700,000 and spent another $3,600,000 on street and utilities improvements. Assign the joint land and improvement costs to the lots using the value basis of allocation and determine the average cost per lot. (Do not round your intermediate calculations.) Market Value Percent of Market Value Cost to Allocate Allocated Cost Quantity of Lots Average Lot Cost Numerator Denominator % of Mkt Value Canyon section Hilltop section Totals