Madeline interviews with orson for a position at perfunctory magazine. during their discussion of the position's responsibilities, orson says that madeline will have at least three bylines per issue. orson offers her the job, and madeline accepts. madeline does not have a single byline in the next two editions of the magazine. the ceo of the perfunctory tells madeline that because orson's byline promise is not in her contract, the magazine does not have to honor it. is this true?
a. yes. the contract governs the employment relationship. if madeline wanted the byline promise to be enforceable, she should have put it in the contract.
b. yes. the promise would be enforceable only if it is in the contract, or if orson is a top executive of the magazine
c. no. verbal promises made during the hiring process are generally enforceable, even if not approved by the company's top executives.
d. yes. orson's promise was only enforceable if it was in the contract, or contained in some other writing, like an email or memo.

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?