INIMUM ke no immediate Let's look at another example mpany profit . Grocery Storehouse Inc owns both West Coast the transfer price affect Plantations (producing) and Grocery Mart (retailing). will be shown by the Here is some information on both divisions:- $10 $12 $14 $16 $18 $20 West Coast Plantations, Fresno: (wants to sell oranges) $2 $6 $8 $10 $12 Navel orange harvest capacity per month 10,000 crates ices Variable cost per crate of navel oranges 10 per crate $8 $6 $4 $2 $0 -$2 Fixed costs per month $ 100,000 ales) $10 $10 $10 $10 $10 $10 External selling price of navel oranges 25 per crate Grocery Mart, Long Beach: (wants to buy oranges) External purchase price of navel oranges $ 20 per crate Monthly sales of navel oranges 1,000 crates XIMUM 12 JIMUM 2 Quick Check Quick Check West Coast Plantations (Seller) . Due to a new order(!), West Coast Plantations . Capacity: 10,000 crates can now sell 9,500 crates in the outside market Variable cost: $10 per crate . Can sell 9,500 crates in the outside market at $25 at $25. What is the minimum and maximum Grocery Mart (Buyer) feasible transfer price (TP) for the 1000 crate . Wants to buy 1,000 crates (all or nothing) order between the divisions? . Can get Oranges itself for $20 per crate Min TP What is the minimum and maximum feasible transfer price Max TP (TP) for the 1,000 crate order? $25 $20 (no possible deal) Min TP Max TP $10 $20 $25 $20 (no possible deal) $10 $25 $10 $20 C. d $17.50 $20 C. $10 $25 d $17.50 $20 17 18