Case 10 - Word galdo gaspar GG a File Home Insert Mailings Review View Help Tell me what you want to do Share Draw Design Layout References Calibri (Bady) - 11 ( A A A A Aav BIU ahe x, XA A & cut Pe Copy Paste Format Painter Clipboard 5 E... 21 14 AaBb CcDc AaBbCcDc AaBbcc Aabbcc AaB I Normal No Spac... Heading 1 Heading 2 Title Find - all Replace Select ay L- Font Paragraph Styles Editing CASE 19 - TRANSFER PRICING (20 pts) Microchip Division of Lydell Industries makes a microprocessor chip that it presently sells only to outsiders. The Consumer Products Division of Lydell is bringing out a new oven that requires a sophisticated chip and has approached Microchip for a quotation Microchip sells the chip for P28. incurs variable costs of P9, and has excess capacity. The Consumer Products Division can acquire a suitable chip from outside the company for P22. REQURIED: a) Determine the advantage to Lydell Industries as a whole for the Consumer Products Division to buy the chip from Microchip, as opposed to buying it outside. b) Determine the minimum price that Microchip would accept for the product. c) Determine the maximum price that Consumer Products would pay Microchip for the chip. d) How would your answers to each of the preceding items change if Microchip was working at capacity? Page 15 of 17 O words [P English (United Kingdom) 140% W ENG UK 0 9:25 PM 10/31/2021