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Brief Exercise 11-22. Calculating Transfer Price Objective 4. Example 11.4 Teslum Inc. has a number of divisions, including the Machina Division, a producer of

Brief Exercise 11-22. Calculating Transfer Price Objective 4. Example 11.4 Teslum Inc. has a number of divisions, including the Machina Division, a producer of high-end espresso makers, and the Java Division, a chain of coffee shops. Machina Division produces the EXP-100 model espresso maker that can be used by Java Division to create various coffee drinks. The market price of the EXP-100 model is $950, and the full cost of the EXP-100 model is $475.

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