Exercise 22-20B Determining transfer prices LO C2 The Trater dision of Baxter Bicycles makes bike trailers that attach to bicycles and can catchide or cargo. The trailers have a retail price of $101 each. Each trailer incurs $40 of variable manufacturing costs. The Trailer division has capacity for 25.000 trailers per year and incurs fixed costs of $580,000 per year. Required: 1. Assume the Assembly division of Baxter Bicycles wants to buy 4 400 trailers per year from the Trade in the Trailer division can sell all of the trailers it manufactures to outside opstomers what price should be used on transtes between Baxter Bicycles 2. Assume the Trailer division Currently only sells 11.000 Trailers to outside customers, and the Assembly division wants to buy 4400 trailers per year from the Troler division What is the range of acceptable prices that could be used on transfers between Bader Bicycles's divisions 1 Transfer properti 2 Transfer orice per te will be at least but not more The $ * @ 2 $ 4 % 5 01 > & 7 00. 3 9 0 Q W E R T Y U 1 O A S D F G H J K L 2 Z C V 00 N M 1 H 36 command otion command option