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Collyer Products to has a Valve Division that menutoctures and sells a standard valve as follows: Capacity in its Selling price to outside customers on

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Collyer Products to has a Valve Division that menutoctures and sells a standard valve as follows: Capacity in its Selling price to outside customers on the interentiate market Variable costs per unit Fixed costs per unit based on capacity) 10,000 15 The company has a Pump Division that could use this valve is the manufacture of one of its pumps The Pump Division is currently purchasing 10,000 valves per year from an overseas supplier at a cost of 514 per valve Required: 1. Assume that the Valve Division nas omple de capacity to handle all of the Pump Division's needsWhat is the acceptabile range, any for the transfer price between the two divisions 2. Assume that the Valve Divion is selling all that it can produce to outside customers on the intermediate market. What is the acceptable range, if any, for the transfer price between the two divisions 3. Assume again that the Valve Division is seen that it can produce to outside customers on the intermediate market. Also assume that $2 invariable expenses can be vided on transfers within the company, due to reduced seeing costs What is the acceptable range, if any, for the transfer pince between the two divisions Tease price 4. Assume the Pump Division needs 20.000 special pressure Valves per year. The Vive Division's variable costs to manufacture and ship the special valve would be $10 per un to produce these special valves, the Valve Division would have to reduce its production and sales of regular valves from 100.000 units per year to 70.000 units per year. As for os the Valve Division is concerned What is the lowest acceptable transfer price (Round your answer to 2 decimal places)

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