Genus Products, Inc. has a Relay Division that manufactures and sets a number of products, including a standard relay that could be used by another division in the company the Electronics Oton, in one of s products Data concerning that reley appear below Capacity in units Selling price to outside customers Variable cost per unit Fised cost per unit (based on capacity) $ 20,000 55 $ 17 31 $ The Electronics Division is currently purchasing 9.000 of these relays per year from an overseas supplier at a cost of $52 per rely 4 Assume that the Relay Division is selling all of the relays & can produce to outside customers. Also assume that 54 in variable expenses can be avoided on transfers within the company due to reduced shipping and seling costs. Does there exist a transfer price that would make both the Relay and Electronics Division financially better off than if the Electronics Division were to continue buying to relays from the outside supplier Faxed cost per unit (based on capacity) 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 $4 in variable expenses can be avoided on transfers within the company due to reduced ship selling costs. Does there exist a transfer price that would make both the Relay and Electronics Division financially better off than if the Electronics Division were to continue buying its relays from the outside Multiple Choice No, the selling division's price to outside customers is higher then the price that the buying division has to pay its outside supplier The answer cannot be determined from the information that has been provided Yes, the minimum transfer price that the selling division should be willing to accept is less than the maximum wanster price that the buying division would accept doh dions would be fay be a fo transfers were to take place Yes, both divisions are always better off regardless of whether the seling division has enough idle capecity to t buying theson's needs Ganus Products, Inc., has a Relay Division that manufactures and sells a number of products, including a standard relay that could be products. Data concerning that relay appear below: Capacity in units Selling price to outside customers Variable cost per unit 70,000 55 $ 17 Fixed cost per unit (based on capacity) $ 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 $4 in variable expens selling costs. Does there exist a transfer price that would make both the Relay and Electronics Division financially better off than if the Multiple Choice No, the selling division's price to outside customers is higher than the price that the buying division has to pay its outside supplier The answer cannot be determined from the information that has been provided. Sanus Products, Inc., has a Relay Division that manufactures and sells a number of products, including a standard re products. Data concerning that relay appear below. Capacity in units Selling price to outside customers $ 70,000 55 Variable cost per unit $ Fixed cost per unit (based on capacity) 17 31 The Electronics Division is currently purchasing 9,800 of these relays per year from an overseas supplier at a cost of Assume that the Relay Division is selling all of the relays it can produce to outside customers. Also assume that $4 in selling costs. Does there exist a transfer price that would make both the Relay and Electronics Division financially bet Multiple Choice 4 No, the selling division's price to outside customers is higher than the price that the buying division has to pay its out The answer cannot be determined from the information that has been provided. Yes, the minimum transfer price that the selling division should be willing to accept is less than the maximum transfer p transfers were to take place. Yes, both divisions are always better off regardless of whether the seling division has enough idle capacity to handle a