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An appropriate transfer price between two division of the Fathom Company can be determined from the following data: Fabricating Division 76 Market price of subassembly

An appropriate transfer price between two division of the Fathom Company can be determined from the following data:

Fabricating Division 76

Market price of subassembly 46

Variable cost of subassembly 3,600

Number of units needed 2,200

What is the natural bargaining range for the two divisions?

Between $46 & $76

Between $76 & $122

Any amount less than $76

$76 is the only acceptable transfer price

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