Can you please solve all the questions.
Neicro Company's Electrical Division produces a high-quality transformee. Sales and cost data on the transformer follow: Nelcro Company has a Motor Division that would Ilke to begin purchasing this transformer from the Electricai Division. The Motor Division is cuirrently purchasing 10,000 transformers each year from another company ot a cost of $38 per transformer. Neicro Company evaluates its division managers on the basis of divisional profits. Required: 1. Assume that the Electical Division is now selling only 50,000 transformers each year to outside customers: a. From the standpoint of the Electrical Division, what is the lowest acceptable transfer price for transformers sold to the Motor Division? b. From the standpoint of the Motor Division, what is the highest acceptable transfer price for transformers acquired from the Electrical Division? c. If left free to negotate without interference, would you expect the division managers to voluntarly agree to the transfer of 10,000 transformers from the Electifcal Division to the Motor Division? Yes No d. From the standpoint of the entire company, should a transfer take piace? Transfer should not take place. Transfer should take place. Transfer should not take place. Transfer should take place. 2. Assume that the Electrical Division is now selling all of the transformers it can produce to outside customers. o. From the standpoint of the Electrical Dision, what is the lowest acceptable transfer price for transformers sold to the Motor Division? b. From the standpoint of the Motor Division, what is the highest acceptable transfer price for transformers acquired from the Electrical Division? c. If left free to negotiate without interference, would you expect the division managers to voluntarly agree to the transfer of 10.000 transformers from the Electrical Division to the Motor Division? Yes No d. From the standpoint of the entre company, should a transter take place? Transfer should not take place. Transfer should take place