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1. Assume Beta has full capacity and the following transfer prices , calculate the effects: Show calculations Selling Price $45 $75 $100 Gamma Gain /Loss

1. Assume Beta has full capacity and the following transfer prices , calculate the effects: Show calculations Selling Price $45 $75 $100

Gamma Gain /Loss Beta Gain/Loss Alpha Gain/Loss

At what price does a transfer make sense? Explain.

2. Assume Beta has idle capacity and the following transfer prices, calculate the effects: Show calculations Selling Price $10 $65 $100

Gamma Gain /Loss Beta Gain/Loss Alpha Gain/Loss

At what price does a transfer make sense? Explain.

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