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highways. Fach yeas, the Motei Divinan parchases fumiture for the motel rooms. Currently, it purchases a basic drester from an euteade suppher for 560 .

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highways. Fach yeas, the Motei Divinan parchases fumiture for the motel rooms. Currently, it purchases a basic drester from an euteade suppher for 560 . The manager of the Furnitaas Dwivion thas approached the manager of the Motel Dision about aeling dressees to the Motel Dwision. The full product coit of a dresine is s79. While the Furnture Divivion has been epenating at eapacity (50,000 dressers per year) and salling them for 560 each, it expects to prodice and sell onlv 40,000 dres sers for $60 each nest yeat The faimiure Divison incurs variable costs of 517 per diesser. The Motal Divion nieeds 10,000 dressars per year: the Fumiture Divison can make ue to 50 , 000 diessers per yeat, The company policy is that all transfer prices are oegotiated by the divinions invelved. Hequiredt 1. What is the maxmum transfer puce? Whichi divinon seta it? 2. What is the muriniuan tanster beken? x Whichalmion sets at 3. Suppose that the twor divsions agree on a transter price of 333 . What is the lienefit for the hurniture Diviaion? For the Morei Division? for Aukman inc. as a aboie

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