aloch Transfer Pricing Aulman Inc. has a number of divisions including a Furniture Division and a Motel Division. The Motel Division owns and operates a line of budget motsted song major highways. Each year, the Motel Division purchases furniture for the motel rooms, Currently, it purchases a basic dresser from an outside suppler for s60, The manager of the Furniture Division has approached the manager of the Motel Division about selling dressers to the Motel Division. The Nail product cost of a dresser is $20. While the Furniture Division has been operating at capacity (50,000 dressers per year) and selling them for $60 each, it expects to produce and sell only 40,000 drever for $60 each next year. The Furniture Division incurs variable costs of 512 per dresser The Motel Division needs 10,000 dressers per year the Furniture Division can make up to 50.000 dressers per year. The company policy is that all transfer prices are negotiated by the divisions involved. 3. Suppose that the two divisions agree on a transfer price of $37. What is the benefit for the Furniture Division for the Motel Division? For Aulman Inc. as a whole? Benefit to Furniture Division 240,000 x Benefit to Motel Division 60,000 X Benefit to company 270,000 X Check My Wor The selling division sets the minimum price and the buying division sets the maximum price Calculate cost for furniture division first with revenue, transfer price multiplied by units transferred