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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
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: $25.00 28.00 42.00 ariable cost Full cost Market price In addition, its capacity data follow: Capacity per year Current production level 40,000 puters 30,000 putters Required . Assuming Grover produces 3,000 putters per year, determine the overall benefit of using putters from Birdie instead of purchasing them extemally Total Savings 2. Datermine the maximum price that the production facility would be willing to pay to purchase the putters from Birdie. aximum price 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.) Beneficial Price 5. If Birdie were operating at capacity. What would the minimum price it accept? inimum pice
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