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please help !!! those 2 questions are connected not independent Required information [The following information applies to the questions displayed below] In each of the
please help !!! those 2 questions are connected not independent
Required information [The following information applies to the questions displayed below] In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are efvaluated bosed on their. divisional profits Required: 1. Refer to the dota in case A above. Assame in this case thot $4 per unit in variable selling costs can be avolided on intracompany sales a. What is the lowest acceptable transfer price from the perspective of the selling division? b. What is the highest acceptoble transfer price from the perspectipt of the buying division? c. What is the range of ecceptable transfer prices (f any) between the two divisions? If the managers are free to negotate and moke decisions on thelr own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. Required information [The following informotion applies to the questions displayed below] In each of the cases below, assume Division X has a product that can be sold ether to outside customers or to Division Y of the same company for use in its production process The managers of the divisions are evaluated based on theit divisional profits Required: 2. Refer to the doto in case B obove In this case, there wil be no shvings in varibble selling costs on introcompony soles. a. What is the lowest acceptoble transfer price from the perspective of the seling division? b. Whot is the highest acceptable tronsfer 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 negotiote and make decistons on their own, will a trenster probably take place Step by Step Solution
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