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Collyer Products Inc has a Valve Division that manufactures and sells a standard valve as follows Capacity in units selling price to outside customers on

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Collyer Products Inc has a Valve Division that manufactures and sells a standard valve as follows Capacity in units selling price to outside customers on the intermediate market Variable costs per una Food costs per unit (based on capacity 209,00 $.23 3.32 39 The company has a Pump Division that could use this valve in the manufacture of one of its pumps The Pump Division is currently purchasing 12.000 valves per year from an overseas supplier at a cost of $20 per valve 1. Assume that the Valve Division has ample de capacity to handle all of the Pump Division's needs What is the acceptable range.it any for the transfer price between the two ovisions? Answer is complete but not entirely correct. 1512 Transfer price 20 2. Assume that the Valve Division is selling all that it can produce to outside customers on the intermediate market what is the acceptable range of any, for the transfer price between the two divisions? Answer is complete but not entirely correct. Tiana Die $35 21 3. Assume again that the Valve Division is selling all that it can produce to outside customers on the intermediate marker Also assume that $3 in varioble expenses can be avoided on transfers within the company, due to reduced selling costs What is the acceptable range if any, Tor the transfer price between the two divisions? Answer is complete but not entirely correct 20 18 price 4. Assume the Pump Division needs 20.000 special high-pressure valves per year. The Valve Division's variable costs to manufacture and ship the special valve would be $11 per unit. To produce these special valves, the Valve Division would have to reduce its production and sales of regular valves from 280.000 units per year to 240.000 units per yeat As far as the Valve Division is concerned what is the lowest acceptable transfer price? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Tiander $ 19.00 price

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