Required: Refer to case $1$ shown above. Alpha Division can avoid $$2$ per unit in commissions on any sales to Beta Division.

a$.$ What is Alpha Division's lowest acceptable transfer price?

b$.$ What is Beta Division's highest acceptable transfer price?

c$.$ What is the range of acceptable transfer prices $($if any$)$ between the two divisions? Will the managers probably agree to a

transfer? Refer to case $2$ shown above. A study indicates that Alpha Division can avoid $$5$ per unit in shipping costs on any sales to

Beta Division.

a$.$What is Alpha Division's lowest acceptable transfer price?

b$.$ What is Beta Division's highest acceptable transfer price?

c$.$ What is the range of acceptable transfer prices $($if any$)$ between the two divisions? Would you expect any disagreement

between the two divisional managers over what the exact transfer price should be$?$

d$.$ Assume Alpha Division offers to sell $44,000$ units to Beta Division for $$116$ per unit and that Beta Division refuses this

price. What will be the loss in potential profits for the company as a whole? Refer to case $3$ shown above. Assume that Beta Division is now receiving an $8\%$ price discount from the outside supplier.

a$.$ What is Alpha Division's lowest acceptable transfer price?

b$.$ What is Beta Division's highest acceptable transfer price?

c$.$ What is the range of acceptable transfer prices $($if any$)$ between the two divisions? Will the managers probably agree to a

transfer?

d$.$ Assume Beta Division offers to purchase $34,000$ units from Alpha Division at $$60$ per unit. If Alpha Division accepts this

price, would you expect its ROI to increase, decrease, or remain unchanged?Refer to case $4$ shown above. Assume that Beta Division wants Alpha Division to provide it with $122,800$ units of a different

product from the one Alpha Division is producing now. The new product would require $$49$ per unit in variable costs and would

require that Alpha Division cut back production of its present product by $46,050$ units annually. What is Alpha Division's lowest

acceptable transfer price?

$1.$ Refer to case $1$ shown above. Alpha Division can avoid $$2$ per unit in commissions on any sales to Beta Division.

a$.$ What is Alpha Division's lowest acceptable transfer price?

b$.$ What is Beta Division's highest acceptable transfer price?

c$.$ What is the range of acceptable transfer prices $($if any$)$ between the two divisions? Will the managers probably agree to a transfer?

$2.$ Refer to case $2$ shown above. A study indicates that Alpha Division can avoid $$5$ per unit in shipping costs on any sales to Beta Division.

a$.$ What is Alpha Division's lowest acceptable transfer price?

b$.$ What is Beta Division's highest acceptable transfer price?

c$.$ What is the range of acceptable transfer prices $($if any$)$ between the two divisions? Would you expect any disagreement between the two divisional managers over what the exact transfer price should be$?$

d$.$ Assume Alpha Division offers to sell $44,000$ units to Beta Division for $$116$ per unit and that Beta Division refuses this price. What will be the loss in potential profits for the company as a whole?

$3.$ Refer to case $3$ shown above. Assume that Beta Division is now receiving an $8\%$ price discount from the outside supplier.

a$.$ What is Alpha Division's lowest acceptable transfer price?

b$.$ What is Beta Division's highest acceptable transfer price?

c$.$ What is the range of acceptable transfer prices $($if any$)$ between the two divisions? Will the managers probably agree to a transfer?

d$.$ Assume Beta Division offers to purchase $34,000$ units from Alpha Division at $$130$ per unit. If Alpha Division accepts this price, would you expect its ROI to increase, decrease, or remain unchanged?

$4.$ Refer to case $4$ shown above. Assume that Beta Division wants Alpha Division to provide it with $122,800$ units of a different product from the one Alpha Division is producing now. The new product would require $$49$ per unit in variable costs and would require that Alpha Division cut back production of its present product by $46,050$ units annually. What is Alpha Division$$s lowest acceptable transfer price?