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Homework: HW-6: Ch 11, 13, and 22 core: 0 of 1 pt 22-26 (final answer) 11 of 12 (2 complete) HW Score: 20%, 3 of
Homework: HW-6: Ch 11, 13, and 22 core: 0 of 1 pt 22-26 (final answer) 11 of 12 (2 complete) HW Score: 20%, 3 of 1 Question Help The Clover Company manutactures and sells television sets. Its assembly division (AD) buys television screens trom the screen division (SD) and assembles the TV sets. The SD, which is operating at capacity, incurs an incremental manutacturing cost ot $8 per screen. The SD can sell all its output to the outside markct at a pricc of 5115 per screen, ater incurring a variablc markcting and distribution cost of 59 per screen. If the AD purchascs screcns from outside supplicrs at a pricc of $115 per screen, it will in variable purchasing cost of $5 per screen. Clovers division managers can act autonomously to maximize their own division's operating income Read the requirements Requirement 1. What is the minimum transter price at which the SD manager would be willing to sell screens to the AD The maximum transfer price isS Requirements 1. What is the minimum transfer price at which the SD manager would be willing to sell 2. What is the maximum transter pnice at which the AD manager would be willing to 3. Now suppose that the SD can sel only 80% of its output capacity of 20,000 screens per screens to the AD? purchase screens trom the S0? mionth orn the open market. Capacity cannol be reduced in the short run. The AD cani assemble and sel more than 20,000 TV sets per month. a. What is the minimum transfer price at which the SD manager would be willing to sell screens to the AD? b. From the point ot view of Clover's management, how much of the SD output should be transferred to the AD? c. If Clover mandales the SD and AD managers to 'split the differenice" on the minimui and maximum transfer prices they would be willing to negotiate over, what would be the resulting transfer price? Does this price achieve the outcome desired in Enter any number in the edit fields and then click Check Answer Print Done Check Answer 5:22 PM O Type here to search 38/2019
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