2. Federar, SA, a Swiss transportation equipment manufacturer is heavily decentralized. Each division head has ful authonity on all decisions reganding saies to internal or extemal customers. The Zug division has sways acquired a certan equipment component from the St. Gallen division The St Gallen division recently acqured specialized equipment that is used primarily to make this comporent. The Gereva division has informed the Luceme division that their fxed costs have increased by CHF 20 Zug division's management has now decided to purchase the component from outside supplers at a price of CHF 255. The St. Galen dvision has supplied the following production cost data for this component (Click the icon to view the data.) per unit because of the depreciation charges on the new equipment, so the unit price wil be increased to CHF 275. However, the Read the requiements Requirement 1, Suppose there are no atermative uses of the St. Gallen facilities the Zug division buys from the outside suppliers for CHF 255 per unit? Show c and that fixed costs wil contrue r St Galen no lenger produces the component for Zug. wi the company as a whole benefe if computations to support your answer Begih by compiesing the tabie below to calculate the net ost (Cenefit) to the company as a whole. (Enter a net beneft using parentheses or a minus sign.) Less: Net oost (benefit) to compary as a whole The company as a whole (3)benefit if the Zug division purchases the componert from an outside supplier for CHF 255 per unit Requirement 2. Suppose there is an altemative use for he St. Galen facilities If the St. Gallen faclites are used to produce the component for the Zug division, the St. Galen division will oive up a conteribution of CHF 79.000 from this alternative use. Should the Zug division purchase from outsiders at CHF 255 per unit? Begin by completing the table below to calculate the net cost (benefit) to the company as a whole (Enter a net benet using parentheses or a minus sign Less: 5 Net cost (oeneitg to company as a whoie In this scenario, the Zug Division 7)prchase the comporent from an outside supplier for CHF 255 per unt Begin by comgleting the table below to calculane the net cost (benefit) to the compary as a whole (Enter a net benett using parentheses or a minus sign) Less Net cost (benei) to company as a whole In this scenario, tho Zng divison (10)-- --purchase component tom the outside sugglers Requirement 4. As the president, how wouid you respond t te St Galen divison managers requosts that you require the Zug division to purchase the component from St. Galen? Woud your response dffer depending on the specfe shustions described in numbers 1-3? Why O A Any struchure that interferes with lower-level decision-making weakens decentralization, therefore, you O D. In order to resolve the dspute, you, as oompany president, should convene with the division managers as president, should not get involved in such a dispute to go over acceptatle transfer prices based on each of the ree soenaries from requrement 1 through 3. Acceptabie tanser prices wil be those that maximine profits of each division as well as the company O G. Any scture hat interferes with lower-level decision-making weakens decentraliuation tPherafore, you aspresders, soud not get moved n s ch a disp te Anenoplin may be made, "e sa% to prevent homendous francial blunders Onstances where division maragers' decisions resut in a signifcant adverse inancial impact to the compary as a whole )