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10.00 points Tulip Company is made up of two divisions: A and B. Division A produces a widget that Division B uses in the production of its product. Variable cost per widget is $1.55; full cost is $2.80. Comparable widgets sell on the open market for $3.30 each. Division A can produce up to 3.00 million widgets per year but is currently operating at only 50 percent capacity. Division Bexpects to use 150,000 widgets in the current year Required: 1. Determine the minimum and maximum transfer prices. (Enter your answers to 2 decimal places.) Minimum Transfer Price Maximum Transfer Price 2. Calculate Tulip Company's total benefit of having the widgets transferred between these divisions. 3. If the transfer price is set at S$1.55 per unit, determine how much profit Division A will make on the transfer. Determine how much Division B will save by not purchasing the widgets on the open market. (Round your answers to 2 decimal places.) Division A Profit per Unit per Unit Division B Savings 4. If the transfer price is set at S53.30 per unit, determine how much profit Division A will make on the transfer. Determine how much Division B will save by not purchasing the widgets on the open market. (Round your answers to 2 decimal places.) Division A Profit per Unit Division B Savings per Unit 5. What transfer price would you recommend to split the difference? (Round your answer to 3 decimal places.) nsfer Price

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