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In each of the cases below, assume that Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits Case DIvislon X: Capacity In units Number of units belng sold to outside customers Selling price per unit to outside customers Varlable costs per unit Fixed costs per unit (based on capacity) 101,000 101,000 50 29 101,000 86,000 29 12 Divislon Y 15,000 45 15,000 Number of units needed for production Purchase price per unit now belng paid to an outside supplier value Required information 5.00 points Required 1-a. Refer to the data in case A above. Assume in this case that $1 per unit in variable selling costs can be avoided on intracompany sales. Determine the transfer price of the selling division Transfer price 2 1-b. If the managers are free to negotiate and make decisions on their own, will a transfer take place? 0 O Yes