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Aequined Infurmation In cach of the cases below, assume Division x hat a product that con be sold enthet to ovivede customers oi to olvision

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Aequined Infurmation In cach of the cases below, assume Division x hat a product that con be sold enthet to ovivede customers oi to olvision y of the same company for use in its proctaction process. The managers of the divisions are evaluated based on theit ditsional protits. 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 free to negotiate and make decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. Aequined Infurmation In cach of the cases below, assume Division x hat a product that con be sold enthet to ovivede customers oi to olvision y of the same company for use in its proctaction process. The managers of the divisions are evaluated based on theit ditsional protits. 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 free to negotiate and make decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below

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