Transfer pricing: manufacturer LO 12.12 , 12.13 The company's best selling product is a 11.2 metre, double-paned window. The standard cost of the window is detailed as follows: * Not including the transfer price for the frame. Required 1. Assume that there is no spare capacity in the frame division. (a) Use the general rule to calculate the transfer price for window frames. (b) Calculate the transfer price if it is based on standard variable cost with a 10 per cent markup. 2. Assume that there is spare capacity in the frame division. (a) Use the general rule to calculate the transfer price for window frames. (b) Explain why your answers to requirements 1 (a) and 2(a) differ. markup. at $930 each. From the perspective of Clearview as a whole, should the special order be accepted or rejected? Explain your answer. (e) Assume the same facts as in requirement 2(d). Would an autonomous glass division manager accept or reject the special order? Why? rule to calculate the transfer price, and explain the likely decision that the two divisions will make about the transfer