William started his company, StoryMaps, in 2005 with a lofty goal. He wanted to "bring people together by revolutionizing the way they understand and communicate about their neighborhoods." StoryMaps allowed users to hover over a map location and zoom in to post stories, reminiscences, thoughts, photos, and reviews of locations and read those left by others. William envisioned StoryMaps as "a mashup of Yelp, Google Maps, and an online literary magazine" and the company’s stated mission was that it would "foster meaningful conversations in the Internet age." He enlisted several well-known writers to contribute stories about map locations meaningful to them. Initially, StoryMaps approached schools and universities about incorporating StoryMaps into their curriculum. But when a startup expressed interest in partnering with StoryMaps to develop a mobile app that would reach a larger market, William was reticent. He did not think StoryMaps needed an app—at that time, apps were still fairly new, costly, and many of them failed. StoryMaps managed for a couple of years before finally going under in 2007. Why did William’s vision fail?

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?