18-8

Goal congruence, negotiated transfer prices. continuation of Exercise 18.17) Refer to the information in Exercise to required to transfer its yearly output of 400000 units of topline to the Metals Division. Required From the standpoint of Seculars, SA, as a whole, what quantity of topline should the Mining Division transfer to the Metals Division? Now suppose each division manager acts autonomously to maximize the division's operating profit. What range of transfer prices will result in managers of the Metals and Mining Divisions achieving the actions determined to be optimal in requirement 1? Explain your answer. Would you recommend that Escuelas allow the divisions to buy and sell toldine in the open market, and to negotiate the transfer price between themselves? Explain your answer. Goal congruence, negotiated transfer prices. continuation of Exercise 18.17) Refer to the information in Exercise to required to transfer its yearly output of 400000 units of topline to the Metals Division. Required From the standpoint of Seculars, SA, as a whole, what quantity of topline should the Mining Division transfer to the Metals Division? Now suppose each division manager acts autonomously to maximize the division's operating profit. What range of transfer prices will result in managers of the Metals and Mining Divisions achieving the actions determined to be optimal in requirement 1? Explain your answer. Would you recommend that Escuelas allow the divisions to buy and sell toldine in the open market, and to negotiate the transfer price between themselves? Explain your