Exercise 9-20B Determining transfer prices LO C2 The traller divslon of Baxter BIcycles makes bike trailers that attach to bicycles and can carry children or cargo. The trallers have a retal price of $93 each. Each traller Incurs $42 of vartable manufacturing costs. The traller division has capacity for 27,000 trallers per year and Incurs fixed costs of $450,000 per year. Requlred: 1. Assume the assembly division of Baxter BIcycles wants to buy 6,000 trallers per year from the traler division. If the traler diviston can sell all of the trailers it manufactures to Outside customers, what price should be used on transfers between Baxter Bicycles's divisions? 2. Assume the trailer division currently only sells 10,900 trallers to outside customers, and the assembly division wants to buy 6,000 trailers per year from the traller division, What is the range of acceptable prices that could be used on transfers between Baxter Bicycles's divistons? Transfer price per trailer 1. Transfer price per trailer will be at least 2. but not more than