Ganus Products, Inc, has a Relay Division that manufactures and sells a number of products, including a standard relay that could be used by another division in the company the Electronics Division in one of th products. Data concerning that relay appear below Capacity in units Selling price to outside customers Variable cost per unit Fixed cost per unit (based on capacity). 70,000 $ 55 $ 17 $ 31 The Electronics Division is currently purchasing 9.800 of these relays per year from an overseas supplier at a cost of $52 per relay Assume that the Relay Division is selling all of the relays it can produce to outside customers Also assume that 54 in variable expenses can be avoided on translers when the company due to reduced shipping and seling costs. Does there exist a transfer once that would make both the Relay and Electronics Division financially better off than if the Dectronics Ovision were to continue buying s relays from the outside supples e Electronics Division is currently purchasing 9.800 of these relays per year from an overseas supplier at a cost of $52 per relay sume that the Relay Division is selling all of the relays it can produce to outside customers. Also assume that $4 in variable expenses can be avoided on transfers within the company due to reduced song and ling costs Does there exist a transfer price that would make both the Relay and Electronics Division financially better off than if the Electronics Ovision were to continue buying says from the outd Mutiple Choace No: the selling dvision's price outside customers is higher then the price that the buying vision has to peysunde su Yes, the minimum transfer price transfers were so take place the selling division should be willing to accept is less then the maximum transfer price that the buying dvon would scout Budva ter fe Ves, both divisions are ways better off regardless of whether the selling don has enough de capacity to handle all of the buying do's needs