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Required information The following information applies to the questions displayed below. In each of the cases below, assume Division has a product that can be sold to outside customers or to Division of the same company. The managers of the divisions are evaluated based on their divisional profits. Required: Refer to the data in case A above. Assume in this case $ per unit in variable selling costs can be avoided 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 negotiate and make decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. Required Required B Required What is the lowest acceptable transfer price from the perspective of the selling division? 
Required information
The following information applies to the questions displayed below.
In each of the cases below, assume Division has a product that can be sold to outside customers or to Division of the
same company. The managers of the divisions are evaluated based on their divisional profits.
Required:
Refer to the data in case A above. Assume in this case $ per unit in variable selling costs can be avoided 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 negotiate and make
decisions on their own, will a transfer probably take place?
Complete this question by entering your answers in the tabs below.
Required
Required B
Required
What is the lowest acceptable transfer price from the perspective of the selling division?
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