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Fyodor Corporation has a Parts Division that does work for other Divisions in the company as well as for outside customers The company's Machine Division

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Fyodor Corporation has a Parts Division that does work for other Divisions in the company as well as for outside customers The company's Machine Division has asked the Parts Division to provide it with 6000 special parts each yearl The special parts would require 521 per unit in variable production costs. The Machine Division has a bid from an outside supplier for the special parts at $3120 per unit in order to have time and space to produce the special part. the Parts Division would have to cutback production of another partthe QR4 that it presently is producing, The QR4 sells for $40 per unit, and requires $20 per unit in variable production costs. Packaging and shipping costs ofthe 0R4 are $2 per unit Packaging and shipping costs for the new special part would be only $0.50 per unit The Parts Division is now producing and selling 30,000 units of the QR4 each year. Production and sales of the QRA would drop by 5% if the new special part is produced for the Machine Division, Required: Please calculate the following: Fyodor Parts Division Selling transfer price $ (rounded to 2 decimal places) Fyodor Machine Division Buying Transfer price $ (rounded to 2 decimal places) Should the transfer take place (Yes or No)

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