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Leneau Products, Incorporated, has a Connector Division that manufactures and sells a number of products, including a standard connector that could be used by another

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Leneau Products, Incorporated, has a Connector Division that manufactures and sells a number of products, including a standard connector that could be used by another division in the company, the Transmission Division, in one of its products. Data concerning that connector appear below: The Transmission Division is currently purchasing 12,000 of these connectors per year from an overseas supplier at a cost of $52 per connector. Assume that the Connector Division is seling all of the connectors it can produce to outside customers. Also assume that $5 in variable expenses can be avoided on transfers within the company due to reduced shpping and selling costs Does there exist a transfer price that would make both the Connector and Transmission D.vision financlally better off than if the Transmassion Division were to continue buying its connectors from the overseas stipplier? Mulviple Choice Yes, the minimum transfer poice that the seling division should be willing to accept is less than the maximum transfer price that the buying division would occept Both divisions would be financially better off if the transfers were to take ploce The answer cannot be determined fron bye informeton that hes been provided Yes, both evisions are always better off repordews of Whether the seling dvision has enough idle copacty to hande ail of the buying division's needs No, the reling divion's price to outside custorreg is higher than the price thot the buyng division has to poy its outside soppliec

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