$$CaseABDivision X:$$Capacity in units$95,00093,000$Number of units being sold to outside customers$95,00073,000$Selling price per unit to outside customers$ $58$$ $35$Variable costs per unit$ $27$$ $17$Fixed costs per unit $($based on capacity$)$$ $8$$ $5$Division Y:$$Number of units needed for production$20,00020,000$Purchase price per unit now being paid to an outside supplier$ $54$$ $34$

Required:

$1.$ Refer to the data in case A above. Assume in this case that $$3$ per unit in variable selling costs can be avoided on intracompany sales.

a$.$ What is the lowest acceptable transfer price from the perspective of the selling division?

b$.$ What is the highest acceptable transfer price from the perspective of the buying division?

c$.$ What is the range of acceptable transfer prices $($if any$)$ between the two divisions? If the managers are free to negotiate and make decisions on their own, will a transfer probably take place?