chapter 21 hw

The fastener division of Ayayai Fasteners manufactures zippers and then sells them to customers for $7.00 per unit. Its unit variable cost is $2.50, and its unit fixed cost is $1.00. Management would like the fastener division to transfer 11,000 of these zippers to another division within the company at a price of $2.50. The fastener division could avoid $0.15 per zipper of variable packaging costs by selling internally, Determine the minimum transfer price. (a) Assuming the fastener division is not operating at full capacity. (Round answer to 2 decimal places, eg. 10.50.) Minimum transfer price (b) Assuming the fastener division is operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price