Transfer Pricing Reddy Industries is a vertically integrated firm with several divisions that pertes de entre procenten Beddy's Systems Division manufactures the struments and use the products of two of Reddy's other divisions. The board Division manures printed circuit boards (PCB). One model is made exclusively for the Systems Dining propetaly designs, while less complex models we sold outside market. The products of the Transistor Division are so we developed competitive market; however, on troto modes also used by the Systems Division. The costs per unit of the products used by the Systems Division are as follows PCB Transistor Direct materials $1.80 50.40 Direct labor 4:20 0.0 230 0.70 Variable overhead Fixed overhead 0.80 0.70 $2.00 Total cost $9.10 The Board Division suls its commercial product at full cost plus 30 percent markup and bebeves the proprietary board made for the Systems Division would set for 12 per unit on the open market. The market price of the transistor used by the Systems Division s SA 40 per unit Required: 1. What is the momum transfer price for the Transistorsion? Found your answer to the nearest cent. 5 What is the maximum transfer price of the transistor for the Systems Division Round your answer to the nearest cent. per unit 2. Assume the Systems Division be purchase a large quantity of tastors from an outside wet 52.60 perther assume that the Transistor Dyson has excess Previs Net Direct materials $1.80 50.40 Direct labor 4.20 0.80 Variable overhead 2.30 0.70 Fored overhead Total cost 0.70 $9.10 52.60 The Board Division ses its commercial product at costlus 30 percent and the brotaryboard made for the Systems Division would set for 512 perut on the open market. The market price of the transistor used by the Systems Divisionis $4.40 per un Required: 1. What is the minimum transfer price for the Transistor Division Round your answer to the nearest cent. $ per unit What is the maximum transfer price of the transstor for the Systems Division? Round your answer to the nearest cent. per unit 2. Assume the Systems Division is able to purchase a large quantity of transistors from an outside out $2.00 per unit. Further assume that the Transistor Division has excess capacity. Can the Transistor Division meet this price