Need help on the question, starting with other factors to consider. options for first = Customers, chips division, external supplier of chips.... options for second = profitably in the short term, profitably in the long term, unprofitably..... options for third = return to its external supplier, extend the pricing...

TC Electronics is a manufacturer with two departments: Computer Chips and Cell Phones. The computer chip that is produced in the Chips Department can be sold to customers at $5.75 per chip. The costs associated with the computer chips are as follows: (Click the icon to view the costs.) The Cell Phone Department has been purchasing the chips that it needs for $3.50 per chip from CompuParts, but the manager was thinking that if the Chips Department could supply the chips for less than what CompuParts is asking, then it would arrange a transfer between departments instead of giving the business to an external company. If the Cell Phone Department needs 200,000 computer chips and current production in the Chips Department is 400,000 chips, should a transfer take place? If so, at what price? (Note: For internal transfers, the selling and administrative costs are reduced to $0.25 per unit.) What other qualitative factors might need to be considered? First, let's determine if a transfer should take place. Begin by determining the minimum transfer price. The minimum transfer price is $ 2.70 The internal transfer should take place. The price for the internal transfer should fall between $ 2.70 and $ 3.50 What other qualitative factors might need to be considered? If the Other factors to consider would be the relationship that the Cell Phone Division has with its customers Chips Division is only able to transfer chips profitably in the short term will the Cell Phone Division be able to return to its external supplier for additional orders? Click to select your answer(s) and then click Check