Division Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $75 each. Managers of each division are free to make decisions related to purchases and sales of its own products. The maximum transfer price is: $59 $75 $50 $80 Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $65 each. Managers of each division are free to make decisions related to purchases and sales of its own products. The minimum transfer price is: $40 $70 $46 $65 Oivision A makes a part with the following characteristics: Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $75 each. Managers of each division are free to make decisions related to purchases and sales of its own products. If a transfer does not take place, the corporation will be: Worse off by $125,000 each period Worse off by $25,000 each period Better off by $25,000 each period Worse off by $80,000 each period Division A makes a part with the following characteristics: Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $65 each. Managers of each division are free to make decisions related to purchases and sales of its own products. The minimum transfer price is: $46 $70 $65 $40 Division A makes a part with the following characteristics: Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $75 each. Managers of each division are free to make decisions related to purchases and sales of its own products. The minimum transfer price is: $74 $65 $55 $56 Division Xmakes a part with the following characteristics: Division Y, another division of the same company, wound like to purchase 4,000 units of the part each period from Division X. Division Y is now purchasing these parts from an outside supplier at a price of $48 each. Managers of each division are free to make decisions related to purchases and sales of its own products. Division X can avoid $3 per unit in commissions on any sales to Division Y. The minimum transfer price is: $27 $50 $47 $30
