stion 13 22 The Television Company manufactures and sells television sets. Its assembly division (ASD) buys television screens from the screen division (SDV) and assembles the TV sets. The SDV, which is not operating at its full capacity of 20,000 screens, incurs an incremental manufacturing cost of $75 per screen. The SDV can sell 15,000 screens to the outside market at a price of $105 per screen, after incurring a variable marketing and distribution cost of 57 per screen. If the ASD purchases screens from outside suppliers at a price of $105 per screen, it will incur a variable purchasing cost of $8 per screen, Television Company's division managers can act autonomously to maximize their own division's operating income. 1. What is the minimum transfer price at which the SDV manager would be willing to sell 5000 screens to the ASD? [U 2. What is the maximum transfer price at which the ASD manager would be willing to purchase the 5000 screens from the SDV? [0 3. Now suppose that the SDV can sell 100% of its output capacity of 20,000 screens per month on the open market. Capacity cannot be increased in the short run, The ASD can assemble and sell more than 20,000 TV sets per month. a. What is the minimum transfer price at which the SDV manager would be willing to sell the 5000 screens to the ASD? 3) b. What is the maximum transfer price at which the ASD manager would be willing to purchase screens from the SDV? 3) c. Explain what options Television Corporation would consider to ensure that the managers of both divisions make goal congruent decisions [2] October 19, 2021 7:27:02 AM GST