CH 21 HW

Comm Devices (CD) is a division of Worldwide Communications, inc. CD produces restaurant pagers and other personal communication devices. These devices are sold to other Worldwide divisions, as well as to other communication companies. CD was recently approsked by the manager of the Personal Communications Division regarding a request to make a special emergencyresponse pager designed to receive signals from amwhere in the world. The Personal Communications Division has fequested that CD produce 11,400 units of this special pager. The following facts are available regarding the Comm Devices Division. For esch of the following independent situations, calculate the minimum transfer price, and determine whether the Personal Communications Division should accept or reject the offer: (a) The Personal Communications Division has odfered to pay the CD Division $106 per pager. The CD Division has no avaliable capacity. The CD Division would have to forgo sales of 9,120 pagers to existing customers in order to meet the request of the Personal Comenunications Division. (Note. The number of speclal pagers to be produced does not equal the number of existing pagers that would be forgone) (Round answer to 2 decimal places, e.s. 125.36) Minimum transter price Persorul Communications Divisice should the offer. Personal Communications Division should the offer. (b) The Personal Communications Division has offered to pay the CD Division 5150 per pager. The CD Division has no available capacity. The CD Division would have to forgo sales of 15,200 pagers to existing customers in order to meet the request of the Personal Cormmunications Division. (Note: The number of special pagers to be produced does not equal the number of existing pagers that would be forgone) Minimum transfer price Personal Communications Division should the offer. (c) The Personal Communications Division has offered to pay the CD Division $101 per pager. The CD Division has avalable capacity. Minimum transfer price $ Personal Communications Division should the ofter