It was business as usual$-$the dice division was producing lovely colored dice sets and sending them on to the board game division.

Completed game sets are sold to the company's fan base of nostalgic grandparents who want to play their childhood board games

with their own grandchildren.

As things stand, the dice sets themselves are not very valuable in the marketplace, so producing the quantity desired by the board

game division is a key objective for the dice division. The dice manager still watches her costs, though, which are variable cost per dice

set $$3\mathrm{.}60$ and total product cost per dice set $$7\mathrm{.}90.$

$($a$)$

Your answer is correct.

What type of responsibility center is the dice division?

The board game division?

eTextbook and Media

Attempts: $1$ of $3$ used

$($c$)$

Suppose the market trends shift even more toward "old school" games, and the dice sets, all by themselves, suddenly become very

popular. The dice divisional manager realizes she could sell the sets externally for $$10\mathrm{.}60$ per set and make some profit instead of

simply transferring them to the game division, where she doesn't currently recognize any profit. If this is the case, within what

price range should the dice divisional manager be willing to sell the dice sets internally? $($Round answers to $2$ decimal places, e$.$g$.$

$15\mathrm{.}25.)$

Minumum transfer price $

Maximum transfer price $

eTextbook and Media