Chapter 11 Example McKenna's Florida Division is currently purchasing a part from an outside supplier. The company's Alabama Division, which has excess capacity, makes and sells this part for external customers at a variable cost of $22 and a selling price of $34. If Alabama begins sales to Florida, it (1) will use the general transfer-pricing rule and (2) will be able to reduce variable cost on internal transfers by $4 A. If sales to outsiders will not be affected, what's the transfer price would Alabama would establish? B. If sales to outsiders will be reduced due to the limited capacity, what's the transfer price would Alabama would establish