Nelero Company's Electrical Division produces a high-quality transformmer. Sales and cost data on the transformer folow Seling price per unit on the outside market Variable costs per unit Foxed costs per unit (based on capacity) Capacity in units $40 521 So 60,000 Neloro Company has a Motor Division that would like to begin purchasing this transformer from the Electrical Division. The Motor Division is currenitly purohasing 10,000 transformers each year from another company at a cost of $38 per transformer. Neicro Company evaluates its division managers on the basis of divisional profits Required 1, Assume that the Electrical nsion is now se trg onty 50.000 transformers each year to outide 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 hghest acceptable transfer price for transfomers acquined from the Electrical Division? a I left free to negctate without interference, would you expect the dvision managers to voluntary agrse to the transfer of 10,000anermers rom te Bectical Dison to the Motor Dision? O Yes O No d. From the standpoint of the entre company shoud a branster tace place? O Tranafer should tae place Transfer should not take place 2. Assume that the Elechncal Drvision is now seling al of the transformers : can produce to outs de a. From the sandpoint of the Etrca Ovisionhat: is the lowest aocecable transter price for tranuformers sold 10 the Motor Divsion