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An appropriate transfer price between two divisions of The Fathom Company can be determined from the following data: (CIA adapted) Fabricating Division Market price of
An appropriate transfer price between two divisions of The Fathom Company can be determined from the following data: (CIA adapted) Fabricating Division Market price of subassembly Variable cost of subassembly Excess capacity (in units) Assembling Division Number of units needed $ 80 $ 50 4,000 2,400 What is the natural bargaining range for the two divisions? Multiple Choice O $80 is the only acceptable transfer price. O Between $80 and $130. ( Any amount less than $80. o o Between $50 and $80
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