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Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Houschold Division of Chen then assembles and
Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Houschold Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis. Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places, e.3. 10.50.) Minimum transfer price eTextbook and Media Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transter price The Personal Communications Division has offered to pay the CD Division $150 per pager. The CD Division has no available capacity. The CD Division would have to forgo sales of 14,400 pagers to existing customers in order to meet the request of the Personal Communications 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 avallable capacity. Minimum transfer price Personal Communications Division should the offer. 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 approached 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 requested that CD produce 10,800 units of this special pager. The following facts are available regarding the Comm Devices Division. For each of the following independent situations, calculate the minimum transler price, and determine whether the Personal Communications Division should accept or reject the offer. (a) The Personal Communications Division has offered to pay the CD Dwision $106 per pager. The CD Division has no available capacity The CD Division would have to forgo sales of 8,640 pagers to existing customers in order to meet the request of the Personal Communications Division, (Note The number of special pagers to be produced does not equal the number of existing pagers that would be forgone) (Round answer to 2 decimal places, es. 125.36.) Minimumtranster price Personal Comemunication Divsion shoul the otfer
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