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Comm Devices (CD) is a division of Bramble Communications, inc, CD produces restaurant pagers and other personal communication devices. These devices are sold to other

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Comm Devices (CD) is a division of Bramble Communications, inc, CD produces restaurant pagers and other personal communication devices. These devices are sold to other Bramble divisions, as well as to other communication companles, CD was recently approached by the manager of the Personal Communications Division regarding a request to make a special emersency-response pager designed to receive signals from anywhere in the world. The Personal Communications Division has requested that CD produce 10,200 units of this speciat pager. The following facts are avaliable regarding the Comm Devices Division. For each of the following independent situations, calculate the minimum transfer 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 Division $110 per pager. The CD Division has no available capacity. The CD Division would have to forgo sales of 8,160 pagers to existing customers in order to meet the request of the Personal Communications Division. (Note: The number of special papers to be prodoced does not equal the number of existing pagers that would be forgone) (Round answer to 2 decimal places, e.s. 12.5.36.) Minimum transfer price Personat Communications Division should the ofter: (b) The Personal Communications Division has offered to pay the CD Division 5150 per pager. The CD Division fus no avallable capacity The CD Division would have to forgo sales of 13,000 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 at evisting pagers that would be forgone) Minimum transter price Persocial Communications Division should the otter. (c) The Personai Communlcations Divislon has offered to pay the CD Division $105 per pager. The CD Divison has waltablecapacity. Minimum transfer price 5 Personal Commanications Diskion should the offer

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