A 2013 study was undertaken by a team of researchers with doctorates in nutrition and medicine at an accredited research university. The study investigated risk factors for vitamin d deficiency in people who live in denmark and people who live in australia. By studying patterns in the population, the researchers demonstrated a correlation between the lack of sunny days in denmark and the high incidence of osteoporosis there, compared to the abundant sunny days and low incidence of osteoporosis in australia. However, the results could not rule out other factors in the subject's diet or lifestyle as possible causes of the discrepancy in incidence.

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?