Required information [The following information applies to the questions displayed below.] In each of the cases below, assume Dlvision X has a product that can be sold elthet 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 their divisional profits. Required: 1. Refer to the date in case A above. Assume in this case that 51 per unit in variable selling costs can be avoided on intracompany sales a. What is the lowest acceptable transter price from the perspective of the selling division? b. Whot is the highest acceptable transfer price from the perspective of the buying division? c. What is the range of acceptable transfer prices (f any) between the two divisions? If the managers are free to negotiate and make decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. Required: 1. Refer to the data in case A above. Assume in this case that $1 per unit in variable selling costs can be avolded on intracompany sales. 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? Complete this question by entering your answers in the tabs below. What is the lowest acceptable transfer price from the perspective of the selling division? Required: 1. Refer to the data in case A above. Assume in this case that $1 per unit in variable selling costs can be avolded on intracompany sales. 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? Complete this question by entering your answers in the tabs below. What is the highest acceptable transfer price from the perspective of the buying division? Required: 1. Refer to the data in case A above. Assume in this case that $1 per unit in varlable selling costs can be avoided on intracompany sales. 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? Complete this question by entering your answers in the tabs below. 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
