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4 Quail Company produces outdoor gear. Salter is a division of Quall that manufactures unbreakable zippers used in Quail's gear and sold to other manufacturers.
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Quail Company produces outdoor gear. Salter is a division of Quall that manufactures unbreakable zippers used in Quail's gear and sold to other manufacturers. Cost information per zipper follows: In addition, Salter's capacity data follow: Required: 1. Assuming Quail produces 300,000 sleeping bags per year, what is the overall benefit of using zippers from Salter instead of purchasing them externally? 2. Determine the maximum price the sleeping bag production facility would be willing to pay to purchase the zippers from Salter. 3. Determine the minimum price Salter will accept as a transfer price. Note: Round your answer to 1 decimal place. 4. Determine the mutually beneficial transfer price for the zippers. Note: Round your answer to 1 decimal place. 5. If Salter were operating at capacity, what is the minimum price it would accept Step by Step Solution
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