Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division's retum on investment (ROI). Assume the following information relative to the two divisions: "Before any purchase discount. Required: 1. Refer to case 1 shown above. Alpha Dision can avoid $2 per unt in commissions on any sales to Beta Division. a. What is Alpha DMsion's lowest acceptable transfer price? b. What is Beta Division's highest acceptable transfer price? c. What is the range of acceptable transfer prices (f anyl between the two divisions? Will the managers probably agree to a transfer? 2. Refer to case 2 shown above A study indicates that Apha Divion can avoid $5 per unit in shipping costs on any sales to Beta DMsion. a. What is Alpha Division's lowest acceptable transfer price? b. What is Beta Division's highest acceptable transfer price? c. What is the range of acceptable transfer prices (f any between the two divisions? Would you expect ary disagreement between the two divsional managers over what the exact transfer price should be? d. Assume Alpha Division offers to sell 317,000 units to Beta Division for $122 per unt and that Beta Divion refuses this price What wit be the loss in potential profits for the company as a whole? 3. Refer to case 3 shown above. Assume that Beta Division is now recelving an 8% pnce discount from the ourside supplier: a. What is Alpha DMsion's lowest acceptable transfer price? b. What is Beta DMsion's highest acceptable transfer price? c. What is the range of acceptable transfer prices of anyl between the two divisions? Wil the managers probably agree to a transfer? d. Assume Beta Division offers to purchase 37.000 units from Alpha DMision at 5145 per unit. if Alpha Diviton occepts this price, would you expect its ROI to increase, decrease, or remain unchanged? 4. Refer to case 4 shown above. Assume that Beta Dission wants Apha Divion to pronde it wht 123,400 unts of a different product from the one Alpha Divsion is producing now. The new product would require $55 per unt in varnable costs and would require that Alpha Division cut back production of ns present product by 46,275 units annually. What is Alpha Division's lowest acceptable transfer price? Complete this question by entering your answers in the tabs below