$6 per unit is what got cut off
5/416265/quizzes/930091/take Tab Window the the following information for question 11 through 13. The Western Division of Sportswear Company makes socks and sells them in its region for 56 unit. A unit ka pair of socks Socks have per-unit variable manufacturing costs of $2.50 The Eastern Division of Sportswear Co is experiencing new demand in its markets (where prices ar somewhat lower. It cannot meet this demand from its own production facilities and would like to boy 15.000 pairs of socis from Western Easter withen sell the socks to its customers at a price of $5.75, and will incur $0.75 per unit of variable selling costs. The Eastern Division has no other source for these socis The Western Division has excess capacity feven at normal volume and it can produce the 15,000 units without interfering with its current outside sales or requiring additional fixed resources. Both divisions are profit centers and are free to trade with each other or not, as they choose. 11. The maximum transfer price per pair of socks that the Eastern Division would be willing to pay the Western Division for these socks is Question 12 12. Now suppose that the Western Division has an opportunity to use its excess capacity to produce 15.000 headbands, it makes these, then it cannot make any socks for the Eastern Division Westerns incremental variable cost of producing and selling headbands is $3.65 per unit, and they are sold to external customers for $5.25 per unit. If the transfer price per pair of socks is at $4.00 the which product will the Western Division want to make in order to maximize its own profit? Socis for the Eastern Heas for the team sta 4 pts etv (o 5/416265/quizzes/930091/take Tab Window the the following information for question 11 through 13. The Western Division of Sportswear Company makes socks and sells them in its region for 56 unit. A unit ka pair of socks Socks have per-unit variable manufacturing costs of $2.50 The Eastern Division of Sportswear Co is experiencing new demand in its markets (where prices ar somewhat lower. It cannot meet this demand from its own production facilities and would like to boy 15.000 pairs of socis from Western Easter withen sell the socks to its customers at a price of $5.75, and will incur $0.75 per unit of variable selling costs. The Eastern Division has no other source for these socis The Western Division has excess capacity feven at normal volume and it can produce the 15,000 units without interfering with its current outside sales or requiring additional fixed resources. Both divisions are profit centers and are free to trade with each other or not, as they choose. 11. The maximum transfer price per pair of socks that the Eastern Division would be willing to pay the Western Division for these socks is Question 12 12. Now suppose that the Western Division has an opportunity to use its excess capacity to produce 15.000 headbands, it makes these, then it cannot make any socks for the Eastern Division Westerns incremental variable cost of producing and selling headbands is $3.65 per unit, and they are sold to external customers for $5.25 per unit. If the transfer price per pair of socks is at $4.00 the which product will the Western Division want to make in order to maximize its own profit? Socis for the Eastern Heas for the team sta 4 pts etv (o
