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An appropriate transfer price between two divisions of Garcia Company can be determined from the following data: 59 Fabricating Division: Market price of the subassembly
An appropriate transfer price between two divisions of Garcia Company can be determined from the following data: 59 Fabricating Division: Market price of the subassembly Variable cost of the subassembly Excess capacity (in units) Assembly Division: Number of units needed $ 75 $ 45 1,000 oints 2 02:50:00 900 What is the range of negotiated transfer prices for the two divisions? Multiple Choice $45 is the only acceptable price Between $75 and $120 o ooo Between $45 and $75 575 is the only acceptable price
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