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 emergency- response pager designed to receive signals from anywhere in the world. The Personal Communications Division has requested that CD produce 11,700 units of this special pager. The following facts are available regarding the Comm Devices Division Selling price of standard pager 596 Variable cost of standard pager $54 Additional variable cost of spedal pager $38 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 $115 per pager. The Co Division has no available capacity The CD Division would have to forgo sales of 9,360 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 disting pagers that would be forgone.) (Round answer to 2 decimal places, eg 125.36) Minimum transfer price $ Personal Communications Division should the offer (b) 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 forge sales of 15.600 pagers to editing customers in order to meet the request of the Personal Communication Division (Note: The number of special papers to be produced does not equal the number of existing users that would be forgone Minimum transfer price Personal Communications Division should the offer id The Personal Communications Division has offered to pay the Division 5110 per paper. The CD Division has wailable capacity Minimum transfer price $ 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 emergency response paper designed to receive signals from anywhere in the world. The Personal Communications Division has requested that CD produce 11.700 units of this special pager. The following facts are available regarding the Comm Devices Division Selling price of standard pager $96 Variable cost of standard pager 554 Additional variable cost of special paper 538 For each of the following independent situations. calculate the minimum transfer prior, and determine whether the Personal Communications Division should accept or reject the offer The Personal Communication Division has offered to pay the CD Division $115 per pager. The Division has no available capacity The CD Division would have to forgo sales of 9,360 pagers to existing customers in order to meet the request of the Personal Communication Division. (Note The number of special pagers to be produced does not equal the number of odsting pagers that would be forgone(Round answer to 2 decimal places, es 125.36) Minimum transfer prices Personal Communications Division should the offer b) The Personal Communication Division has offered to pay the CD Division $150 per paper. The CD Division has no walable capacity The Dion would have to forgosales of 15.600 pagers to costing customers in order to meet the request of the Personal Communications Division. (Note: The number of special pages to be produced does not equal the number of distinc papers that would be forgone) Minimum transfer price 5 Personal Communication Division should the offer 10 The Personal Communication Division has offered to pay on 5110 per page. The Colon has wat Minimum transfer price $
