Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions: Case 1 2 3 4 Alpha Division: Capacity in units 50,000 292,000 104,000 192,000 Number of units now being sold to outside customers 50,000 292,000 79,000 192,000 Selling price per unit to outside customers $ 103 $ 41 $ 66 $ 45 Variable costs per unit $ 67 $ 20 $ 42 $ 32 Fixed costs per unit (based on capacity) $ 28 $ 8 $ 23 $ 7 Beta Division: Number of units needed annually 10,700 73,000 21,000 64,000 Purchase price now being paid to an outside supplier $ 96 $ 39 $ 66 * — *Before any purchase discount. Managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated.

You would like to purchase one class a share of berkshire hathaway through your scottrade brokerage account. scottrade charges a ​$6 commission for online trades. you log into your​ account, check the​ real-time quotes for berkshire hathaway​ (you see a bid price of ​$262 comma 900 and an ask price of ​$263 comma 730​) and submit your order. a. what is the current​ bid/ask spread for berkshire hathaway class a​ shares? b. if scottrade routes your buy order to the​ nyse, where berkshire hathaway is​ listed, what's the potential minimum your total transaction costs will​ be? c.​ if, instead, scottrade routes your buy order to​ nasdaq, where berkshire hathaway is not​ listed, what's the potential maximum your total transaction costs will​ be? d. regardless of how your trade is​ executed, based on the​ bid/ask spread, what is the market value of your​ trade? a. the current​ bid/ask spread for berkshire hathaway class a shares is ​$ nothing. ​(round to the nearest​ dollar.)