![\"image](\"https:\/\/s3.amazonaws.com\/si.experts.images\/answers\/2024\/06\/667e9267c9aaa_047667e9267add74.jpg\")
<\/div><\/div><\/div> Question 4 (12 marks) The Electric Division of Ecological Products Co. has developed a wind generator that requires a special \"S\" ball hearing. The Ball Bearing Division of Ecological Products Co. has the capability to produce such a ball bearing. Unfortunately, the Ball Bearing Division is operating at capacity and will need to reduce production of another existing product, the \"T\" hearing, by 1,000 units per month to provide the 600 \"S\" bearings needed each month by the Electric Division. The \"T\" bearing currently sells for $50 per unit. Variable costs incurred to produce the \"T\" hearing are $30 per unit; variable costs to produce the new \"S \" bearing would be $60 per unit. The Electric Division has found an external supplier that would furnish the needed \"S\\\" bearings at $100 per unit. Assume that both the Electric Division and Bali Bearing Division are evaluated as independent, autonomous investment centers. Required: 1. What is the maximum price per unit that Electric Division would be willing to pay the Ball Bearing Division for the \"S\" bearing? What is the minimum price that Ball Bearing Division would consider to produce the \"S\" hearing? Explain your answers with data support. 2. What is the minimum price that Ball Bearing Division would consider to produce the \\\"S\" hearing if the Ball Bearing Division did not need to forfeit any of its existing sales to produce the \\\"S\" hearing? What other factors besides price would Electric Division consider in deciding Where to purchase the bearing? Explain your answers using the actual data analysis. 3. Discuss the advantages and disadvantages of using market price as a'transfer price",
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"uri": "\/textbooks\/elementary-statistics-12th-edition-450",
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"question_posted": "2024-06-28 06:37:28",
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