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Crane Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its return on investment. Vancouver

Crane Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its
return on investment. Vancouver has the capacity to manufacture 340,000 units of component TR222. Vancouver's variable costs are
$150 per unit. Kamloops uses component TR222 in one of its products. Kamloops adds $90 of variable costs to the component and
sells the final product for $450.
Consider the following independent situations:
Your answer is correct.
Vancouver can sell all 340,000 units of TR222 on the open market at a price of $252 per unit. Kamloops is willing to buy 34,000 of
those units.
What should the transfer price be?
Transfer price
per unit
eTextbook and Media
X Your answer is incorrect.
Of the 340,000 units of component TR222 it can produce, Vancouver can sell 238,000 units on the open market at a price of $252
per unit. Kamloops is willing to buy an additional 34,000 units.
What should the minimum transfer price be?
Minimum transfer price
per unit
eTextbook and Media
X Your answer is incorrect.
Of the 340,000 units of component TR222 it can produce, Vancouver can sell 272,000 units on the open market at a price of $252
per unit. Kamloops is willing to buy an additional 102,000 units.
What should the transfer price be?(Round answer to 2 decimal places, e.g.52.75.)
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