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ABC Corporation makes and sells various products. Division A makes a product that it can sell to Division 1 or to an outside company.
ABC Corporation makes and sells various products. Division A makes a product that it can sell to Division 1 or to an outside company. The following information is available Sales price per product #1 Variable cost per product #1 Fixed production cost for product #1 Fixed SG&A costs for product #1 External sales for product #1 550 $20 $60,000 $90,000 Monthly capacity for product #1 Internal sales for product #1 10,000 Product #1 6,000 Product #1 0 Product #1 Presently, Division #2 purchases nothing from Division #1, but instead pays $45 to an external supplier for the 4,000 items it needs each month. What is the minimum of the trasfer price range for a possible transfer of the item from one division to the other?
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