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The Post Division of Awal Company produces basic posts, which can be sold to outside customers or sold to the Lamp Division of Awal Company

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The Post Division of Awal Company produces basic posts, which can be sold to outside customers or sold to the Lamp Division of Awal Company. The following data are available for last year's activities of the Post Division 8 points ? Saved The Post Division: Capacity in units Selling price per post to outside customers Variable costs per post Fixed costs, total 150,000 $0.875 $0.45 $75,000 The Lamp Division Number of Units needed Purchase Price from Outside Suppliers. 12,500 posts $0.75 Required: 1. Suppose that the Post Division sells to outside customers 135,000 units. What is the lowest transfer price that would not reduce the profits of the Post Division? And what is the range of transfer? 2. Suppose that the Post Division sells to outside customers 150,000 units and the cost of packing and shipping the posts for outside customers is $0.05 per unit, these packing and shipping costs would not have to be incurred on sales of the posts to Lamp Division. What is the lowest transfer price that would not reduce the profits of the Post Division? And what is the range of transfer?