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Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their return on investment (ROL). Assume the

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Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their return on investment (ROL). Assume the following information for the two divisions: "Before any purchase discount. Required: 1. Refer to case 1 shown above. Apha Division can avoid $2 per unit in commissions on any sales to Beta Division. a. What is Alpha Division's lowest acceptable transfer price? b. What is Beta Division's highest acceptable transfor price? c. What is the range of acceptable transfer prices (if any) between the two divisions? Wil the managers agree to a transfer? 2. Refer to case 2 stiown above. A study indicates Alpha Division can avold $5 por unit in shipping costs on any sales to Beta Divalion. a. What is Alpha Division's lowest acceptable transfer price? b. What is Beta Division's highest acceptable transfor price? c. What is the range of acceptoble transfor prices (f any) betwoen the two divisions? Would you expect any disagreoment between the two divisional managers over what the exact transfer price should be? d. Assume Alpha Division offers to sell 44,000 units to Beta Division for $116 per unit and Beta Divsion refuses this price. What will be the company's loss in potential profits? 3. Refer to case 3 shown above. Assume Bota Division is now roceiving an 8% price discount from the outside supplier: a. What is Alpha Division's lowest acceptable transfer price? b. What is Beta Oivision's highest acceptable transfer price? c. What is the range of acceptable transfer prices (if any) betwoen the two divisions? Wil the managers agree to a transfen d. Assume Beta Division offers to purchase 34,000 units from Alpha Division at $130 per unit, if Alpha Division accepts this price. would you expect its ROI to increase, decroase, or romsin unchanged? 4. Refer to case 4 shown above. Assume Beta Division wants Alpha Division to provide a with 122,800 units of a cifferent product from the one Alpha Division is producing now. The new product would require $49 per unit in variable costs and would requice Alpho Division to cut back production of its present product by 46,050 units annually. What is Alpha Divisions iowest acceptable transfer price? Complete this question by entering your answers in the tabs below. \begin{tabular}{|c|c|} \hline \begin{tabular}{c} Requires ih we \\ IC \end{tabular} & =20Requined2Ato \\ \hline \end{tabular} a. What is Apha Bivision's lowest acceppable transfer price? b. What is beto Division's highest eccepteble tranafor price

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