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Required information Exercise 11A-3 Transfer Pricing Situations [LO11-5] [The following information applies to the questions...

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Accounting

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Required information Exercise 11A-3 Transfer Pricing Situations [LO11-5] [The following information applies to the questions displayed below.] In each of the cases below, assume 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 Division X: Capacity in units Number of units being sold to outside customers Selling price per unit to outside customers Variable costs per unit Fixed costs per unit (based on capacity) 101,000 91,000 101,000 71,000 54 26 12 26 $ 10 $ Division Y: 20,000 20,000 Number of units needed for production Purchase price per unit now being paid to an outside supplier 45 $24

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