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Assume that Division A can sell in the open market only 460 units at $1,520 per unit out of the 920 units that it
Assume that Division A can sell in the open market only 460 units at $1,520 per unit out of the 920 units that it can produce every month. Assume also that a 17% reduction in price is necessary to sell all 920 units each month. Compute the contribution margins under following three different alternatives to support your decision. Calculate the Contribution Maring for Division A only. (Round intermediate calculations to 2 decimal places, e.g. 125.25 and final answers to 0 decimal places, e.g. 125.) Alternative 1: Maintain price, no transfers 276,000 Alternative 2: Cut price, no transfers Alternative 3: Maintain price and transfers. Should transfers be made? Yes v If so, how many units should the division transfer and at what price? (If no transfer is necessary input 0 units at $0.) The division should tansfer units at s 1,080 to 1,140 Click you would like to Show Work for this question: Open Shew Work
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