chapter 11

Required information [The following information applies to the questions displayed below.) In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divislons are evaluated based on their divisional ptofits. Required: 1. Reter to the data in case A above. Assume in this case that $4 per unit in varlable selling costs can be avoided on intracompary siales a. What is the lownest acceptable transfer price from the perspective of the selling division? b. What is the lighest acceptable transfer price from the perspective of the buying division? e. What is the range of acceptable transfer pices of any) between the two divisions? If the managers are free to negotlate and make decisionis on their own, will a transter probably take place? Complete this question by entering your answers in the tabs below. Required: 1. Refer to the data in case A above. Assume in this case that $4 per unit in variable selling costs can be avoided 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 (ff any) between the fwo divisions? If the managers are free to negotiate and make decisions on thelr own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. What is the lowest acceptable transfer price from the perspective of the selling division? Required: 1. Refer to the data in case A above. Assume in this case that $4 per unit in variable selling costs can be avoided 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 perspectlve 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. What is the highest acceptable transfer price from the perspective of the buying division? Required: 1. Refer to the data in case A above. Assume in this case that $4 per unit in variable selling costs can be avoided on intracompany sates. 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. 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