capacity Froto Windshield Division variable cost of windshield: 80,000 windshields $400 Bilbo Car Company 50,000 cars variable cost of car Bilbo Sells cars to the following: The Shire Autoplex Prancing Pony Autos Cars of Rivendale 20,000 cars at $14,000 each 20,000 cars at $13,000 each 10,000 cars at $12,600 each $12,000 plus cost of windshield Situation 1: Situation 2: Situation 3: Because Hobbit Cars are a unique size and shape, there is no outside market for Froto's Windshields a) What transfer price should be used to 'sell' windshields to Bilbo? b) How many cars should Bilbo make and sell? c) how do you evaluate Froto and Bilbo (cost, revenue, or profit center)? MordorZone, the Middle Earth's largest auto supply store wants to buy up to 80,000 windshields from Froto at $900 each a) How many windsheilds should be sold to MordorZone to maximize Hobbit profits? b) What transfer price should be used to 'sell' windshields to Bilbo? C) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue, or profit center)? You are Gandoff, CEO of Hobbit Car Emporium and MordorZone, the Middle Earth's largest auto supply store want to buy up to 30,000 windshields from Froto at $900 each BUDGET a) How many windshields should be sold to MordorZone to maximize Hobbit Profits? b) What transfer price should be used to 'sell' windshields to Bilbo? c) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue or profit center)? standard transfer