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In each of the cases below, assume Division X has a product that can be sold to outside customers or to Dlvision Y of the

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In each of the cases below, assume Division X has a product that can be sold to outside customers or to Dlvision Y of the same company. The managers of the divisions are evaluated based on their divisional profits 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

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