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-/1 TID The Lumber Division of Swifty Corporation produces and sells lumber that can be sold to outside customers or within the company to the

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-/1 TID The Lumber Division of Swifty Corporation produces and sells lumber that can be sold to outside customers or within the company to the Construction Division. The following data have been gathered for the coming period: 140000 board feet $4.50 Lumber Division Capacity Price per board foot Variable production cost per bd ft. Variable selling cost per bd.ft. Construction Division Board feet needed Outside price paid per bd.ft. $1.25 $0.50 40000 $4.00 If the Lumber Division sells to the Construction Division, $0.25 per board foot can be saved in shipping costs If current outside sales are 170000 board feet, what is the minimum transfer price that the Lumber Division could accept! O $3.75 $425 $4.00 O $1.50

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