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Besed an production of 75,000 and 120,000 gallons for P and At respectively. Division produces 75,000 gallons per menth. R Divisien uses 120,000 gallons per

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Besed an production of 75,000 and 120,000 gallons for P and At respectively. Division produces 75,000 gallons per menth. R Divisien uses 120,000 gallons per monthy of that, 75.000 gallons are putchased insernally and 45 , 000 are purchased externaly at s10 per gallon. After irocessing through R Divition, a gallan of final product can be sold for 355 . What would be Prs trarisfer price to A Division if the prise is set at 100 percent of variable cost? 5 What woukd be Pss trans/er pike to R Dintion if the price is set at 130 pettent of ful covi 3 Whar would be ps transfer price to R Division if the price is set at market wallie? 1

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