2,a,b,c

Required information [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 elther 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. Required: 2. Refer to the data in case B above. In this case, there will be no savings in variable selling costs on intracompany sales. a. What is the lowest acceptable transfer price from the perspective of the selling division? b. What is the highest acceptable transfer price from the perspective of the buying division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If the managers are hee to negotiate and make decisions on their own, will a transfer probably take place