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#4 Explain in detailed and show the working a. What is a result of e range of transfer prices within which both the Divisions' profits

#4 Explain in detailed and show the working
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a. What is a result of e range of transfer prices within which both the Divisions' profits would increase as agreeing to the transfer of 4,000 parts this year from Division B to Division A? b. Is it in the best interests of the overall company for this transfer to take place? Explain. 4) Tullius Corporation has received a request for a special order of 8,000 units of product C64 for $50.00 cach. The normal selling price of this product is $53.25 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows: Direct labor 7.40 5.20 Variable manufacturing overhead5 ixed manufacturing overhead. Unit product cost. $35.50 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product C64 that would increase the variable costs by $5,00 per unit and that would require a in special molds that would have no salvage value. This special uld have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: etermine the effect on the company's total net operating income of accepting the special order. how your work

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