Question: solve it plz 10 points LA Division A and Division B are divisions within the same company. The managers of both divisions are evaluated based
10 points LA Division A and Division B are divisions within the same company. The managers of both divisions are evaluated based on their division's return on investment (RON) Assunse the following information relative to two divisions Division A Capacity in units 400,000 Numbers of units now being sold to outside customers 400,000 Selling price per unit to outside customers $90 Variable costs per unit $65 Fixed cost per unit (based on capacity) SIS Division B Number of units needed ammually 30,000 Purchase price now being paid to an outside supplier 589 A study indicates that Division A can avoid $5 per unit in shipping costs on any sales to Division B. 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)? a. Calculate the range of acceptable transfer prices between the two divisions? 4. Assume Division A offers to sell 30,000 units to Divinion B for $85 and that Division Brefuses this price. What will be the low in potential profits for the company as a whole and for each division? For the toolbar, press ALT FIO (PC) or ALT FN-F10(Maci BI VS Paragraph Arial IX OOO 10pt
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