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Dock Industries is a decentralized company that evaluates its divisions based on ROI. The Wilson Division has the capacity to produce 2,000 units of a

image text in transcribed Dock Industries is a decentralized company that evaluates its divisions based on ROI. The Wilson Division has the capacity to produce 2,000 units of a component. The Wilson Division's variable costs are $85 per unit; fixed costs are $70 per unit. The Becker Division can use the product as a component in one of its products. The Becker Division would incur $65 of variable costs to convert the component into its own product which sells for $310. Required (consider each question independent of each other): a. Assume the Wilson Division can sell all that it produces for $185 each. The Becker Division needs 100 units. What is the appropriate transfer price? b. Assume the Wilson Division can sell 1,800 units at $265. Any excess capacity will be unused unless the units are purchased by the Becker Division (which can use up to 100 units). What are the minimum and maximum transfer prices

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