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 Divisions'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? Explain.

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 Divisions'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$?$ Explain.

d$.$ Assume Alpha Division offers to sell $30,000$ units to Beta Division for $$88$ 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 Divisions'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? Explain

d$.$ Assume Beta Division offers to purchase $20,000$ units from Alpha Division at $$60$ per unit. If Alpha Division accepts this price,