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Requlred Information [The following Information applles to the questions displayed below.] In each of the cases below, assume Division X has a product that can
Requlred Information [The following Information applles to the questions displayed below.] In each of the cases below, assume Division X has a product that can be sold elther 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. Reculred: 1. Refer to the data in case A above. Assume in this case that $3 per unit in varlable selling costs can be avolded on intracompany sales. What is the lowest acceptable transfer price from the perspective of the selling division? W. What is the highest acceptable transfer price from the perspectlve of the buylng division? c. What is the range of acceptable transfer prices (If any) between the two dlvislons? If the managers are free to negotlate and make decisions on thelr 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? Requlred: 1. Refer to the data in case A above. Assume In this case that $3 per unit in varlable selling costs can be avolded on Intracompany sales. a. What is the lowest acceptable transfer price from the perspectlve of the selling division? b. What is the highest acceptable transfer price from the perspective of the buylng division? c. What is the range of acceptable transfer prices (If any) between the two divislons? If the managers are free to negotlate and make decisions on thelr 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? Requlred: 1. Refer to the data in case A above. Assume in this case that $3 per unit in varlable 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 negotlate and make decisions on thelr 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? 2. Refer to the data In case B above. In this case, there will be no savings in varlable selling costs 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 negotlate and mak 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? 2. Refer to the data In case B above. In this case, there will be no savings In varlable selling costs 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 perspectlve of the buylng division? c. What is the range of acceptable transfer prices (If any) between the two divisions? If the managers are free to negotlate and n decisions on thelr 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? 2. Refer to the data In case B above. In this case, there will be no savings in varlable selling costs 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 perspectlve of the buyling division? c. What is the range of acceptable transfer prices (If any) between the two divisions? If the managers are free to negotlate and mak decisions on thelr 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
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