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Agodones Inc. has a number of divinions, incloding a Mattress Division and a Fumiture Division, The Furnitire Division own and operates a chain of fumiture

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Agodones Inc. has a number of divinions, incloding a Mattress Division and a Fumiture Division, The Furnitire Division own and operates a chain of fumiture storvs in the Midwest. Each year, the Fumiture Oivision purchases mattrenses for its bedrom suites, Currently, it purchases a basic mattreis fromi an dutside supplier for $230. The manaper of the Mattress Oivison fias approached the manager of the Fumiture Division about seling imattresses to the Furniture Division. The full product cost of a mattreas is \$160. The Mattress Division can sell all of the rnattresset it maves to outside companies for 5230 . The Fumiture Division needs 10,000 mattresses per year, the Mattress Division can moke up to 50,000 mattresses per year. Mequired: 1. Which division sets the maximum transfer price? which divisien sets the minimum fransfer price? The maximum transfer peice The mirsimum transfer price 1 2. Suppose the cornpany poicy is tupt all tranters take place at fill cost. What is the trancher prica? 3. Conceptual Connection: Do you think that the trahser, will occur at the company mandoted uransfer price? Furniture Division Matress Divisien

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