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Grover Corp. is a manufacturing company that produces golf clubs. Birdie is a division of Grover that manufactures putters. Birdie's putters are used in Grover's

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Grover Corp. is a manufacturing company that produces golf clubs. Birdie is a division of Grover that manufactures putters. Birdie's putters are used in Grover's golf club sets and are sold to other golf wholesalers. Cost information per putter follows: Variable cost Full cost Market price $25.00 28.00 42.00 In addition, its capacity data follow: Capacity per year Current production level 40,000 putters 30,000 putters Required: 1. Assuming Grover produces 3,000 putters per year, determine the overall benefit of using putters from Birdie instead of purchasing them externally 2. Determine the maximum price that the production focility would be willing to pay to purchase the putters from Birdie. 3. Determine the minimum that Birdie will accept as a transfer price. 4. Determine the mutually beneficial transfer price for the putters, (Round your answer to 2 decimal places.) 5. If Birdie were operating of capacity, what is the minimum price it would accept? 11 1. Total savings with Birdie putters

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