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Assume a company has two divisions, Division D and Division E Division D has provided the following information regarding the one product that it manufactures
Assume a company has two divisions, Division D and Division E Division D has provided the following information regarding the one product that it manufactures and sells on the outside market Division E could use Division D's product as a component part in the manufacture of 4,000 units of its own newh-designed product Division E has recelved a quote of 558 from an outside supplier for a component part that is comparable to the one that Division D makes. If the company's divisional managers are evaluated based on their division's profits and Division D is currently seling 15.000 units on the autside market What is Division D's lewest occeotable transfer price If it were to sell 4,000 units to Division E? Dwision E could use Bivision D's product as a component part in the manufacture of 4.000 units of its own newly-designed product. Division E has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Bivision D makes. If the company's dlvislonat managers are evaluated based on their division's profits and Division D is currently selling 15,000 units on the outside market. what is Division D's lowest occeptable transfer price if it were to sell 4.000 units to Division E? Muitiple croice $44 550 948 552
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