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Presently division S is buying 5,000 timers per month from an overseas suppler is selling its entire capacity of 12,000 timers per month to outside

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Presently division S is buying 5,000 timers per month from an overseas suppler is selling its entire capacity of 12,000 timers per month to outside customers. Division T is considering selling 5,000 timers per month to division S. Division T has no cost savings when 1. From the standpoint of division S, what is the maximum acceptable transfer price for the timers frome it sells to S. division T? a. $15 /unit b. $25/ unit (c) $27/ unit d. $30 /unit 2. From the standpoint of division T, what is the minimum acceptable transfer price in order to sell 5,000 timers to division S ? a. $15/ unit b. $25/ unit c. $27 /unit (d) $30/ unit 3. If division T meets the price of the overseas supplier and sells 5,000 timers to division S each month, what will be the effect on monthly net income of the company as a whole? c. $60,000 decrease d. $10,000 increase 4. Suppose instead that division T can only sell 6,000 timers to outside customers. From the standpoint of division T, what is the minimum acceptable transfer price in order to sell 5,000 timers to division S ? a. S15/unit b. S25/unit c. $27 unit d. S30/unit 5. Suppose instead that division T can only sell 10,000 timers to outside customers. From the standpoint of division T, what is the minimum acceptable transfer price in order to sell 5,000 timers to division S ? a. $20.20/ unit b. $21/ unit c. $19.80/ unit d. $24/ unit

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