Marketing department of metroline manufacturing estimates that its sales in 2020 will be $ 1.57 million. interest expense is expected to remain unchanged at $ 36 comma 000, and the firm plans to pay $ 65 comma 000 in cash dividends during 2020. metroline manufacturing's income statement for the year ended december 31, 2019, is given , along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. a. use the percent-of-sales method to prepare a pro forma income statement for the year ended december 31, 2020. b. use fixed and variable cost data to develop a pro forma income statement for the year

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?