View 125% Zoom + Problem 1 Problem 2 T Add Category Insert Table Chart Text Shape Media Comment Collaborate Format Organize Problem 3 Problem 4 Problem 5 Question 1 10 Marks 26 Minutes Batherson Company is a Manufacturing company that currently operates with two divisions: Beanie and Beta. The Beta division currently manufactures a product that the Beanie division purchases from an outside supplier. The Beanie division needs 50,000 units each year, and pays the outside supplier $50 per unit. Beta division's variable manufacturing cost is $35 per unit and has the capacity to manufacture 75,000 units per year. Currently Beta only produces and sells 55,000 units per year at a selling price of $56 per unit. Required A) Calculate the minimum and maximum transfer prices. B) Assume that the managers of both divisions agree on a transfer price of $49 per unit. Calculate the incremental income of each division if a transfer of 50,000 units is done. Your Response Nothing selected. Select an object to format.