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The Zone Division of CC Industries supplies the Natick Division with 104,000 units per month of an infrared LED that Natick uses in a remote-control device it sells. The transfer price of the LED is $9, which is the market price. However, Zone does not operate at or near capacity. The variable cost to Zone of the LED is $500, while Natick incurs variable costs (excluding the transfer price) of $14 for each remote control. Natick's selling price is $34 i (Click on the icon for more information) Required CD Requirement 1 What level of additional promotional expenses would the Natick division manager choose? (Round amounts to the nearest dollar) It is in Natick's interest to spend on promotional expenses, thereby boosting profits by Requirement 2. As the manager of the Zone division, what level of additional promotional expenses would you like to see the Natick division manager select? (Round the amount to the nearest dollar) Zone's manager would like Natick to spend the highest amount on additional promotional expenses to generate additional volume of units. Requirement 3. As the president of CC Industries, what level of spending would you like the Natick division manager to select? (Round the amount to the nearest dollar.) The company would also like Natick to spend the maximum amount on additional monthly promotional expenses. Requirement 4. What is the maximum transfer price that would induce the Natick division to spend the optimal additional promotional expense from the standpoint of the firm as a whole? (Round your answer to the nearest cent.) The maximum price that induces Natick to act in the best interest of the firm is $ The Zone Division of CC Industries supplies the Natick Division with 104,000 units per month of an infrared LED that Natick uses in a remote-control device it sells. The transfer price of the LED is $9, which is the market price. However, Zone does not operate at or near capacity. The variable cost to Zone of the LED is $500, while Natick incurs variable costs (excluding the transfer price) of $14 for each remote control. Natick's selling price is $34 i (Click on the icon for more information) Required CD Requirement 1 What level of additional promotional expenses would the Natick division manager choose? (Round amounts to the nearest dollar) It is in Natick's interest to spend on promotional expenses, thereby boosting profits by Requirement 2. As the manager of the Zone division, what level of additional promotional expenses would you like to see the Natick division manager select? (Round the amount to the nearest dollar) Zone's manager would like Natick to spend the highest amount on additional promotional expenses to generate additional volume of units. Requirement 3. As the president of CC Industries, what level of spending would you like the Natick division manager to select? (Round the amount to the nearest dollar.) The company would also like Natick to spend the maximum amount on additional monthly promotional expenses. Requirement 4. What is the maximum transfer price that would induce the Natick division to spend the optimal additional promotional expense from the standpoint of the firm as a whole? (Round your answer to the nearest cent.) The maximum price that induces Natick to act in the best interest of the firm is $

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