Information about the 2 divisions of The Hobbit Car Emporium is as follows; capacity variable cost of windshield: variable cost of car Bilbo Sells cars to the following: The Shire Autoplex Froto Windshield Division Prancing Pony Autos Cars of Rivendale Situation 1: Situation 2: Situation 3: 80,000 windshields $400 20,000 cars at $14,000 each 20,000 cars at $13,000 each 10,000 cars at $12,600 each Bilbo Car Company 50,000 cars $12,000 plus cost of windshield Because Hobbit Cars are a unique size and shape, there is no outside market for Froto's Windshields a) What transfer price should be used to 'sell' windshields to Bilbo? b) How many cars should Bilbo make and sell? c) how do you evaluate Froto and Bilbo (cost, revenue, or profit center)? MordorZone, the Middle Earth's largest auto supply store wants to buy up to 80,000 windshields from Froto at $900 each a) How many windsheilds should be sold to MordorZone to maximize Hobbit profits? b) What transfer price should be used to 'sell' windshields to Bilbo? C) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue, or profit center)? You are Gandoff, CEO of Hobbit Car Emporium and MordorZone, the Middle Earth's largest auto supply store want to buy up to 30,000 windshields from Froto at $900 each a) How many windshields should be sold to MordorZone to maximize Hobbit Profits? b) What transfer price should be used to 'sell' windshields to Bilbo? c) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue or profit center)? BONUS 5 POINTS (NO PARTIAL CREDIT) MordorZone wants to buy 50,000 windshields from Froto at a price of $575 each. MordorZone is unwilling to compromise on either the price or the quantity, so Froto either sells 50,000 or 0 windshields to MordorZone. What is the impact on Hobbit income if I sells windshields to MordorZone? I want a dollar amount and whether profits increase or decrease.

Information about the 2 divisions of The Hobbit Car Emporium is as follows; Situation 1: Because Hobbit Cars are a unique sire and shape, there is no outside market for Froto's Windshields a) What transfer price should be used to 'sell' windshields to Bilbo? b) How many cars should Bilbo make and sell? c) how do you evaluate Froto and Bibo (cost, revenue, or profit center)? Situation 2: MordorZone, the Middle. Earth's largest auto supply store wants to buy up to 80,000 windshields from Froto at $900 each a) How many windsheilds should be sold to MordorZone to maximise Hobbit profits? b) What transfer price should be used to 'sell' windshields to Bilbo? C) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue, or profit center)? Situation 3: You are Gandoff, CEO of Hobbir Car Emporium and Mordorzone, the Middle Earth's largest auto supply store want to buy up to 30,000 windshields from Froto at 5900 each a) How many windshields should be sold to MordorZone to maximixe Hobbit Profits? b) What transfer price should be used to 'sell' windshields to Bilbo? c) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bibo (cost, revenue or profit center)? BONU5 5 POINTS (NO PARTAL CREDM) MordorZone wants to buy 50,000 windihieids from Froto at a price of $575 each. MordorZone is unwilting to compromise on either the price or the quantity, so Froto either sells 50,000 or 0 windshields to Mordorzone. What is the impact on Hobbit income if Froto sells windshields to Mordorzone? I want a dollar amount and whether profits increase or decrease