Question: I need a help very fast , only forquestion(4), very fast, please help me! I only have 30 minutes Question 4 Division A and Division
I need a help very fast , only for"question(4)", very fast, please help me!
I only have 30 minutes



Question 4 Division A and Division B are divisions within the same company. The managers of both divisions are evaluated following information relative to two divisions: Division A Capacity in units Numbers of units now being sold to outside customers Selling price per unit to outside customers Variable costs per unit Fixed cost per unit (based on capacity) Division B Number of units needed annually Purchase price now being paid to an outside supplier 150,000 150 000 $75 $45 $20 20.000 $73 A study indicates that Division A can avoid $5 per unit in shipping costs on any sales to Division B. 10 points mpany. The managers of both divisions are evaluated based on their division's return on investment (ROD). Assume the 150.000 150,000 $75 $45 $20 20,000 $73 ping costs on any sales to Division B. Fixed cost pel uit Duuuuu Division B Number of units needed annually Purchase price now being paid to an outside supplier 20,000 $73 A study indicates that Division A can avoid $5 per unit in shipping costs on any sales to Divisione Required: Compute the following 1. Calculate the lowest acceptable transfer price for the seller (Division A)? 2. Calculate the highest acceptable transfer price for the buyer (Division B)? 3. Calculate the range of acceptable transfer prices between the two divisions? 4. Assume Division A offers to sell 20,000 units to Division B for $72 and that Division B res For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). I os I Paragraph Arial 10pt : V 1 g costs on any sales to Division B. (Division A)? (Division B)? ae two divisions? 3 for $72 and that Division B refuses this price. What will be the loss in potential profits for the company as a whole? . ve 2 10pt I. % Q 5 o PH Ref v 19 DOLL
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