Exercise 9-20B Determining transfer prices LO C2 The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo The trailers have a retail price of $108 each. Each trailer incurs $45 of variable manufacturing costs. The trailer division has capacity for 23,000 traers per year and incurs fixed costs of $520,000 per year Required 1. Assume the assembly division of Baxter Bicycles wants to buy 5.300 trailers per yeer from the trailer division fthe traler dwss can sell all of the trailers it manufactures to outside customers, what price should be divisions? 2. Assume the trailer division currently only sells 9,400 trailers to outside customers. and the assembly division wants to buy 5,300 trailers per year from the trailer division. What is the range of acceptable prices that gould be used on transfers between Bextr Bicycles's divisions? used on transfers b etween Baxter Bicycless 1. Transfer price per trailer 2 Transfer price per trailer wil be at least but not more than