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keAssignmentMain.do?inprogress-true Calculator Elite Inc. has many divisions that are evaluated on the basis of return on investme chocolates and needs 90,000 boxes per year. Beta
keAssignmentMain.do?inprogress-true Calculator Elite Inc. has many divisions that are evaluated on the basis of return on investme chocolates and needs 90,000 boxes per year. Beta incurs the following costs for one box: nt (ROI). One division, Beta, makes boxes. A second division, Lambda, makes Direct materials Direct labor Variable overhead Fixed overhead Total $0.40 0.70 0.50 0.16 $1.76 Beta has the capacity to make 720,000 boxes per year. Lambda currently buys its boxes from an outside supplier for $2.00 each (the same p rice that Beta receive Assume that Elite Inc. allows division managers to negotiate transfer price. Beta is producing 650,000 boxes. If Beta and Lambda agree to transfer boxes, what is ceiling of the bargaining range and which division sets it a. $1.35; Beta b. $1.35; Lambda c. $1.48; Beta d. $1.80; Beta e. $2.00; Lambda
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