Save Quest Motors, Inc. operates as a decentralized multidivision company. The Tivo Division of Quest Motors purchases most of its airbags from the Arbag Division. The Airbag Division's incremental cost for manufacturing the airbags is $90 per unit. The Airbag Division is currently working at 80% of capacity. The current market price of the airbags is $125 per unit Requirements Requirement 1. Using the general guideline presented in the chapter, what is the minimum price at which the Airbag Division would sell airbags to the Tivo Division? Using the general guideline presented in the chapter, the minimum price at which the Airbag Division would sel airbags to the Tivo Division is $90, the incremental costs Requirement 2. Suppose that Quest 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 Determine whether transferring products interally at incremental cost has the following properties and give a reason why Yes or No Yes Goal congruence Evaluating division performance No Motivating management effort Preserving division autonomy No No Reason The airbag division is forgoing external sales and contribution margin Only incremental costs should be used to evaluate performance Basing transfer prices on budgeted costs does not force managers to control costs Because the transfer price is not nule based