Division A and Division I are divisions within the same company The managers of both drws valued d Assume the following information relative to two divisions Decision A Capacity in units Selling price per unit to outside customers. Vanable costs por und Fixed cost per unit (based on capacity) Division B Number of units needed annually Purchase price now being paid to an outside supplier 400,000 400000 590 365 $15 30,000 589 A study indicates that Division A can avoid $5 per unit in shipping costs on any sales to Division B. Required: Compute the following 1. Calculate the lowest acceptable transfer price for the seller (Division A)? 2. Calculate the highest acceptable transfer price for the buyer (Division By 3. Calculate the range of acceptable transfer prices between the two divisions? Go to Settings to activat 4. Assume Division A offers to sell 30,000 units to Division B for $88 and that Division B refuses this price. What will be the loss in poteftate Winslowes as a whole and for each division? T Division A and Division B are divisions within the same company. The manager of both dams are reboted hund Assume the following information relative to two divisions Capacity in unite being sold stone a Selling price per unit to outside customers Variable costs per unit Fixed cost per unit (based on capacity) Division B Number of units needed annually Purchase price now being paid to an outside supplier 400,000 590 365 $15 30,000 SHY A study indicates that Division A can avoid $5 per unit in shipping costs on any sales to Division B. Required: Compute the following 1. Calculate the lowest acceptable transfer price for the seller (Division A)? 2. Calculate the highest acceptable transfer price for the buyer (Division B)? 3. Calculate the range of acceptable transfer prices between the two divisions? 4. Assume Division A offers to sell 30,000 units to Division B for $88 and that Division B refuses this price. What will be the loss in potential profits for the company as a whole and for each division? Activate Windows actor ALT+FN+F10 (Mac) Go to Settings to activate V I. x 10