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Cheyenne Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Cheyenne then assembles
Cheyenne Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Cheyenne 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. Unit fixed cost $ 3 Unit variable cost 12 Unit selling price 34 (a) (b) 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 transfer price $
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