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2. Among its divisions, Textron Inc., owns Kelly Aerospace, and Cessna Aircraft. The company is attempting to negotiate a transfer price for Kelly's aircraft magnetos

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2. Among its divisions, Textron Inc., owns Kelly Aerospace, and Cessna Aircraft. The company is attempting to negotiate a transfer price for Kelly's aircraft magnetos to Cessna. Calculate the range of acceptable transfer prices for each of the following situations. Cessna received a quote from its regular supplier for $77 per magneto. The company needs 5,000 magnetos per year. The following data applies to Kelly Aero. Show your work. Selling price per magneto Variable cost per magneto $62 Fixed cost per unit (based on capacity) $8 Kelly Aero manufacturing capacity 25,000 magnetos $80 A. Kelly Aero can sell 20,000 magnetos to other customers B. Kelly Aero can sell 22,500 magnetos to other customers C. Kelly Aero can sell 25,000 speakers to other customers

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