Requirement 1. What is the minimum price at which the airbag division would sell airbags to the Vidro division? The minimum price at which the airbag division would sell airbags to the Vidro division is the Requirements 1. What is the minimum price at which the airbag division would sell airbags to the Vidro division? 2. Suppose that Watson Motors requires that whenever divisions with unused capacity sell products internally, they must do so at the incremental cost. Evaluate this transfer-pricing policy using the criteria of goal congruence, evaluating division performance, motivating management effort, and preserving division autonomy. 3. If the two divisions were to negotiate a transfer price, what is the range of possible transfer prices? Evaluate this negotiated transfer-pricing policy using the criteria of goal congruence, evaluating division performance, motivating management effort, and preserving division autonomy. 4. Instead of allowing negotiation, suppose that Watson specifies a hybrid transfer price that "splits the difference" between the minimum and maximum prices from the divisions' standpoint. What would be the resulting transfer price for airbags