Pert Corporation manufactures state-of-the-art DVD players. It is a division of Vany TV, which manufactures televisions. Pert sells the DVD players to Vany, as well as to retail stores. The following information is available for Pert's DVD player: variable cost per unit $60; fixed costs per unit $45; and a selling price of $150 to outside customers. Vany currently purchases DVD players from an outside supplier for $140 each. Top management of Vany would like Pert to provide 50,000 DVD players per year at a transfer price of $60 each. Compute the minimum transfer price that Pert should accept assumping Pert is operating at full capacity. Minimum transfer price Compute the minimum transfer price that Pert should accept assumping Pert has sufficient excess capacity to provide the 50,000 players to Vany. Minimum transfer price |