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1 Larinore Corporation has a castingi Division that does casting work of varian hype. The co pamaM? hine mo ucs n son Ns s to

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1 Larinore Corporation has a castingi Division that does casting work of varian hype. The co pamaM? hine mo ucs n son Ns s to provide it with 20,000 special castings each year on a continuing basis. The special castings require $20 per unit in variable production costs. The Machine Products Oivision has a bid from an outside suppler of $39 per unit for the n order to have time and space to produce the Castings Division R84 sells for $40 per unit, and requires $16 per unit in variable production casting would be only 51 per unit. The company is now producing and sellige 100,000 units the Castings Dvision wosild have to cut back production of another castingthe RB4,which it presently is produineThe costs Boxing and shipping costs of the 8B4 are $7 per unit. Boxing and shipping costs for the new special of the RM each year. Production and sales of this casting would drop by 20% ,the new casting is prodaced ) What is the range of transfer prices within which both the divisions profits would increase as a result of ) is it in the best interests of Larinore Corporation for this transfer to take place? Explain sereing to the transfer of 20,000 castings per year from the Castines Division to the Machine Produets Diwsn a

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