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5. Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it
5. Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: What is the highest acceptable transfer price Division A could charge to Division B for its product? Lowest? 6. Assume a company is considering buying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company 10,000 units for a price of $40.75 per unit. The company's accounting system reports the following costs of making the part: If the company chooses to buy this component part from a supplier, then $40,000 of the fixed overhead would be avoided. What is the financial advantage (disadvantage) of buying 10,000 units from the supplier
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