Apha and Bets are divisions within the same company. The managers of both divind based on the division's return on investment (RO) Assume the following information relative to the ca 6.1. 13.8. 56.11.11 TL 200.000 HE DV Chi umber of waiting to alde Salt to taide Valtat Part Set is We wissely alas a temple 1 33 + 21 $7.00 1 Before any purchate discount Required: 1. Refer to me shown above. Alpha Division can avoid 53 perunt in comunions on any sales to Beta a What is Alpha Divdion's lowest acceptable transfer price? What is Beta Division Highest acceptable transfer price? What is the range of acceptable transfer prices of any between the ton som? Watre managers probably agree a transfer? 2. Refer to cite shown above. A study indicates that Alpha Dotion can word 55 per cent pe costs on sales to Beta Division a Wratis Alpha Don's lowest acceptable transfer price What is Beta Division's tihest acceptable transfer price? What is the range of acceptable transfer prices any between the MOS? Would you expect any disagreement between the Allume Alpha Division atfers to tel 67.000 units to Beta Division for 541 per cent and that Beta Disson reuseste proe. What we be the loss in potential profits for the company as a whole? 3. Refer to care 3 shown above. Assume that Beto Diversion is now acmag price discount from the citude suple ? What is Beta Division's highest acceptable transfer price? What is the range of acceptable transfer prices for any between the two divisions? Will the managers probably agree to a base a. Assume Beta Division offers to purchase 17000 units from Aloha Division $59.99 gent Division accept the price would you expects ROI to increase, decrease of remain unchanged 4. Refer to cause 4 shown above. Assume that Beta Division wants Alpha Division to provide with 50.000 units of different product from the one Aipha Divaion is producing now The new product would require $25 peranan variable costs and were that Alpha Division cut back production of its present product by 30.000 units annually What is Aihe Division's lowest acceptable transfer price? Complete this question by entering your answers in the tabs below Bag ZARA 20 30 1. Berta con shown above Alphe Division count income 6. What is Beli's Nighest acortable transfer price? e Wut the range of acceptable trancher cerne water wo? we managers by ay the deceptable po wer Hitri gelo (OR There are o scelatories There serre We moet ON Reg 2 e 30 Reg 1A to 10 Req 2A to 20 Req 3A to 3D Reg 4 2. Refer to case 2 shown above. A study indicates that Alpha Division can avoid $3 per unit in shipping costs on any sales to Beta Division 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 (if any) between the two divisions? Would you expect any disagreement between the two divisional managers over what the exact transfer price should be? d. Assume Alpha Division offers to sell 67,000 units to Beta Division for $41 per unit and that Beta Division refuses this price. What will be the loss in potential profits for the company as a whole? Show less Identify the lowest and highest acceptable transfer prices Lowest acceptable transfer price Highest acceptable transfer price Identify the range of acceptable transfer prices of any There is not a range of acceptable transfer prices There is a range of acceptable transfer prices as shown below: S Transfer price 5 Will the managers agree to the trade? Yes No Loss in potential profits for the company