The emission of sulfur dioxide when high-sulfur coal is burned is restricted by law. New coal-burning plants usually comply with the law by installing expensive equipment to filter sulfur dioxide from their emissions. These new plants could save money by installing instead less expensive cleaning equipment that chemically removes most sulfur from coal before combustion. Which of the following, if known, would be most relevant to evaluating the claim above about how new coal-burning plants could save money?(A) Whether existing oil-burning plants are required to filter sulfur dioxide from their emissions(B) Whether the expense of installing the cleaning equipment in a new plant is less than the expense of installing the cleaning equipment in an older plant(C) Whether the process of cleaning the coal is more expensive than the process of filtering the emissions(D) Whether lawful emissions of sulfur dioxide from coal-burning plants are damaging the environment(E) Whether existing plants that use the filtering equipment could replace this equipment with the cleaning equipment and still compete with new plants that install the cleaning equipment

In each of the cases below, assume division x has a product that can be sold either to outside customers or to division y of the same company for use in its production process. the managers of the divisions are evaluated based on their divisional profits. case a b division x: capacity in units 200,000 200,000 number of units being sold to outside customers 200,000 160,000 selling price per unit to outside customers $ 90 $ 75 variable costs per unit $ 70 $ 60 fixed costs per unit (based on capacity) $ 13 $ 8 division y: number of units needed for production 40,000 40,000 purchase price per unit now being paid to an outside supplier $ 86 $ 74 required: 1. refer to the data in case a above. assume in this case that $3 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?