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6114rund to outside customers For (based on capacity) Number needed annually 180 000 $16 $70 15,000 A study indicates that Division A can avoid $5
6114rund to outside customers For (based on capacity) Number needed annually 180 000 $16 $70 15,000 A study indicates that Division A can avoid $5 per unit in shipping costs on any sales to Division B. Required: Compute the following 1. Calculate the lowest acceptable transfer price for the seller (Division A)? 2. Calculate the highest acceptable transfer price for the buyer (Division By? 3. Calculate the range of acceptable transfer prices between the two divisions? 4. Assume Division A offers to sell 15,000 units to Division B for $74 and that Division B refuses this price. What will be the loss in potential profe the comp For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) B IVS Paragraph Arial T 10pt - + 3 Ev Ev A IX "T " BB GE
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