1. What is the minimum price at which the airbag division would sell airbags to the Vidro division? 2. Suppose that High-Performance Motors requires that whenever divisions with unused capacity sell products internally, they must do so at the incremental cost. Evaluate this transfer-pricing policy using the criteria of goal congruence, evaluating division performance, motivating management effort, and preserving division autonomy. 3. If the two divisions were to negotiate a transfer price, what is the range of possible transfer prices? Evaluate this negotiated transfer-pricing policy using the criteria of goal congruence, evaluating division performance, motivating management effort, and preserving division autonomy. 4. Instead of allowing negotiation, suppose that High - Performance specifies a hybrid transfer price that "splits the difference" between the minimum and maximum prices from the divisions' standpoint. What would be the resulting transfer price for airbags? Print Done High-Performance Motors, Inc., operates as a decentralized multidivision company. The Vidro division of High-Performance Motors purchases most of its airbags from the airbag division. The airbag division's incremental cost for manufacturing the airbags is $80 per unit. The airbag division is currently working at 75% of capacity. The current market price of the airbags is $110 per unit. Read the fequirement Requirement 1. What is the minimum price at which the airbag division would sell airbags to the Vidro division? The minimum price at which the airbag division would sell airbags to the Vidro division is , the Requirement 2. Suppose that High-Performance Motors requires that whenever divisions with unused capacity sell products internally, they must do so at the incremental cost. Evaluate this transfer-pricing policy using the criteria of goal congruence, evaluating division performance, motivating management effort, and preserving division autonomy. Determine whether transferring products intemally at incremental cost has the following properties and give a reason why. Goal congruence Evaluating division performance Motivating management effort Preserving division autonomy Requirement 3. If the two divisions were to negotiate a transfer price, what is the range of possible transfer prices? If the two divisions were to negotiate a transfer price, the range of possible transfer prices will be between per unit. The airbag division will be willing to supply the airbags only of the transfer price equals or exceeds exceed The Vidro division will be willing to buy airbags from the airbag division only if the price does not per airbag, the its Evaluate this negotiated transfer-pricing policy using the criteria of goal congruence, evaluating division performance, motivating management effort, and preserving division autonomy. Goal congruence Evaluating division performance Motivating management effort Preserving division autonomy Requirement 4. Instead of allowing negotiation, suppose that High-Performance specifies a hybrid transfer price that "splits the difference between the minimum and maximum prices from the divisions' standpoint. What would be the resulting transfer price for airbags? (Round your answer to the nearest whole dollar.) The hybrid transfer price for airbags is