customers and has a variable cost of $$15.$ The Motor Division has excess capacity.

If Sheffield Company allows division managers to negotiate transfer prices, what is the minimum amount the manager of the Motor Division should consider?

What is the maximum transfer price the manager of the Electric Drill Division should consider?

If Sheffield Company allows division managers to negotiate transfer prices, what is the minimum amount the manager of the Motor Division should consider?

The Motor Division has excess capacity, so the manager should consider a minimum transfer price of

What is the maximum transfer price the manager of the Electric Drill Division should consider?

The maximum transfer price the manager of the Electric Drill Division should consider is

$$15,$ the Motor Division variable cost per unit.

$$20,$ the price it can purchase the motor for from an outside vendor

$$25,$ the price that the Motor Division can sell the motor to outside customers.