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3: Al-Khour group owns two subsidiaries North and South. North produces and sells Woods; the cost structure is as the following: 5 points Variable Cost
3: Al-Khour group owns two subsidiaries North and South. North produces and sells Woods; the cost structure is as the following: 5 points Variable Cost 190$ per ton. The North can sell up to 15000 tons to external market at 340$ per ton. The South usually purchases 3000 units from the market for 300$ and then sell it for 400$. Requirements: 1. If the North currently sells 14000 tons to the market what is the range of transfer price with th 2 points South
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