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Flyer Company has two divisions, Division A und Division Division A produces and sells a product both to Division Bund to outside customers Don Autotal

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Flyer Company has two divisions, Division A und Division Division A produces and sells a product both to Division Bund to outside customers Don Autotal costs of 36 per unit, of which are variable Division Als operating significantly below capacity and the product for 551 per unit both to Division and to outside customers Division B has received an offer from an outside supplier to provide all the units it needs (18,000 units) at a cost of 116 per unit. The manager of Division B is considering the offer Required: 1. What is the minimum transfer price that Division A would be willing to accept? 2. What is the maximum transfer price that Division B would be willing to pay 3. What would be the profit impact to Flyer Company as a whole if Division B purchased the 18,000 units it needs from the outs vendor for $46? Enter the total dollar impact to the company rather than the per unit impact. 4. Now assume that Division A is operating at full capacity and Division B has significant excess capacity. The company has be approached by an outside customer asking for a special order of 4.500 units produced by Division B. Each unit for the spec order would require the product that Division A manufactures as well as an additional $30 of variable cost incurred by Divis B. The outside customer is offering $72 per unit for the special order. a. What would be the incremental profit or loss to Flyer Company as a whole of the special order is accepted and corpo management requires D ion A to provide to Di on B the 4,500 units for the special order at a transfer price $ Enter the total dollar impact to the company rather than the per unit impact b. Should the company accept or reject the special order? Minimum transfer price Maximum transfer price Daniellanliminatin naman na wala e X WON 9 P

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