Clover Inc. manufactures and sells television sets. Its Assembly Division (AD) buys television screens from the Screen Division (SD) and assembles the TV sets. The SD, which is operating at capacity, incurs an incremental manufacturing cost of $80 per screen. The SD can sell all its output to the outside market at a price of $120 per screen. after incurring a variable marketing and distribution cost of $5 per screen. If the AD purchases screens from outside suppliers at a price of $120 per screen, it will incur a variable purchasing cost of $3 per screen. Clovel's division managers can act autonomously to maximize their own division's operating income. muired Requirement 1. What is the minimum transfer price at which the SD manager would be willing to sell screens to the AD? Incremental cost per screen + Opportunity cost per screen = Minimum transfer price + : Requirement 2. What is the maximum transfer price at which the AD manager would be willing to purchase screens from the SD? + = Maximum transfer price + = Requirement 3. Now suppose that the SD can sell only 80% of its output capacity of 10,000 screens per month on the open market. Capacity cannot be reduced in the short run. TheAD can assemble and sell more than 10,000 sets per month. a. What is the minimum transfer price at which the SD manager would be willing to sell screens to the AD? (Select the group(s) of units and enter the minimum transfer price for each group.) a. What is the minimum transfer price at which the SD manager would be willing to sell screens to the AD? (Select the g Units Minimum transfer price b. From the point of view of Clover's management, how much of the SD output should be transferred to the AD? All of the units ng policy will achieve the outcome desired in requirement 3b? None of the units e AD and the SD could negotiate the transfer price, they would settle on a price Only 2,000 units Only 8,000 units Choose from any list or enter any number in the input fields and then continue to the next question.between $80 and $123 b. From the point of view of Clover's management, how much of the SD output should be transferred between $80 and $115 between $115 and $123 at $115 c. What transfer-pricing policy will achieve the outcome desired in requirement 3b? at $123 at $80 If the managers of the AD and the SD could negotiate the transfer price, they would settle on a price Choose from any list or enter any number in the input fields and then continue to the next