The compressor division at norco corporation can buy the coils it requires either from the company's coil division or from the market. assuming the coil division has enough idle capacity to satisfy the compressor division’s requirements, which of the following will be the lower limit for setting the transfer price between the two divisions?
a. selling price per unit of the coil division.
b. cost of buying from outside suppliers for compressor division.
c. variable cost of production for coil division.
d. average opportunity cost of lost sales for coil division.

R& m chatelaine is one of the largest tax-preparation firms in the united states. it wants to acquire the tax experts, a smaller rival. after the merger, chatelaine will be one of the two largest income-tax preparers in the u. s. market. what should chatelaine include in its acquisition plans? it should refocus its attention from the national to the international market. in addition to acquiring the tax experts, it should also determine the best way to drive independent "mom and pop" tax preparers out of business. chatelaine will need to explain to the federal trade commission how the acquisition will not result in an increase in prices for consumers. chatelaine should enter a price-based competition with its other major competitor to force it out of business and become a monopoly.