*** NO EXPLANATION REQUIRED. JUST THE ANSWERS *** 1- All parts connected to the original question:

In Cases 1 to 3 below, assume that Division A has a product that can be sold either to Division B of the same company or to outside customers. The managers of both divisions are evaluated based on her own division's return on investment (ROI). The managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated. Treat each case independently. Case Division A: Capacity in units 52,000 303,000 105,000 190,000 Number of units now being sold to outside customers 52,000 303,000 82,000 190,000 Selling price per unit to outside customers $97 $41 $64 $46 Variable costs per unit $59 $20 $40 $29 Fixed costs per unit (based on capacity) $22 $8 $21 $8 Division B: Number of units needed annually 10,300 69,000 17,000 60,000 Purchase price now being paid to an outside supplier $87 $38 $64 Before any purchase discount Required 1. Refer to Case 1. A study has indicated that Division A can avoid $6 per unit in variable costs on any sales to Division B a. What is the minimum transfer price for Division A? (omit the sign in your response.) Minimum transfer price b. What is the maximum transfer price for Division B? (omit the sign in your response.) Maximum transfer price c. Will the managers agree to a transfer and if so, within what range will the transfer price be? No O Yes