Negotiating a Transfer Price with Excess Capacity

The Foundry Division of Findlay Pumps Inc. produces metal parts that are sold to the company's Assembly Division and to outside customers. Operating data for the Foundry Division for the current year are as follows:

$\backslash$table$[[,\backslash$table$[[$To the Assembly$],[$Division$]],\backslash$table$[[$To Outside$],[$Customers$]],$Total$],[,,,],[600,000$ parts $x$$$8\mathrm{.}00,$$$4,800,000,,],[400,000$ parts $$$$9\mathrm{.}00,,$$$3,600,000,$$$8,400,000$