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Question Completion Statu Question 2 10 points Mula Co, has Division A dur manufactures and sells a comber of parts, including Part XYZ. Data concing Pas XYZ appear belo Capacity in units $5,000 195 Selling price to entecostomers Variable cost per unit $55 Fixed cost per unit (based on capacity) $20 The company has Division B that could use Part XYZ in one of its products. Division B is currently purchaning 20,000 of Part XYZ per year from an overseas suppliet at a cost of $93 per part Required: a. Assume that Division A is selling all of Part XYZ it can produce to outude customers. What is the acceptable range, if any, for the transfer price between the two divisions? [4 marks] b. Assame again that Division A is selling all of Part XYZ it can produce to outside customers. Also assume that 54 in variable expenses can be avoided on transfers within the company thie to reduced shipping and selling costs What is the acceptable range, if any, for the transfer price between the two divisions? (4 marks) c. Based on requirement (a), assume Division A offers to sell 20,000 sauts to Division B for $115 and that Division B refuses this price. What will be the loss in potential profits for Division A [2 marks] for the toolbar, press ALT+F10 (PC) or ALT+FN+F10(Mac) BIUS Paragraph V Arial Y Y 10pt E- A 2 I. Xa F X X Te 99 52 ctures and sells a number of parts, including Part XYZ. Data concerning Part XYZ appear below: Capacity in units 55,000 $95 Selling price to outside customers Variable cost per unit $55 Fixed cost per unit (based on capacity) $20 1 XYZ in one of its products. Division B is currently purchasing 20,000 of Part XYZp year from an overseas supplier