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The Trailer division of Baxter Elicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a market price

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The Trailer division of Baxter Elicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a market price of $104 each. Each trailer incurs $42 of variable manufacturing costs. The Trailer division has capacity for 21000 trailers per year and has fixed costs of $430,000 per year. 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,500 trailers per year from the Trailer division. H the Trailer division can sell all of the trailers it manufactures to outside customers {and has no excess capacity}, what price should be used on transfers between divisions? 2. ssume the Trailer division currently only sells 10,400 trailers to outside customers and has excess capacity. The ssembly division wants to buy 5,500 trailers per year from the Trailer division. What is the range of acceptable prices on transfers between divisions? 2. Transfer price pertrailerwill be at least - but not more than _

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