Problem 11A-6 Basic Transfer Pricing [L011-5] Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI). Assume the following information relative to the two divisions: Case Alpha Division Capacity in units 51,000 317.000 103.000 195.000 Number of units now being sold to outside 51,000 317,000 78,000 195.000 Customers $96 $38 $68 $45 Selling price per unit to outside customers $29 Variable costs per unit $61 $16 $44 $23 $27 $7 Fixed costs per unit (based on capacity) Beta Division: 11,000 66,000 21,000 56,000 Number of units needed annually Purchase price now being paid to an outside S88 S36 $68* supplier Before any purchase discount. Managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated