Problem 15-36 Evaluate Profit lmpact of Alternative Transfer Decisions (LO 15-2, 3) Amazon Beverages produces and bottles a line of soft drinks using exotic fruits from Latin America and Asia. The manufacturing process entails mixing and adding juices and coloring ingredients at the bottling plant, which is a part of Mixing Division. The finished product is packaged in a company-produced glass bottle and packed in cases of 24 bottles each Because the appearance of the bottle heavily influences sales volume, Amazon developed a unique bottle production process at the company's container plant, which is a part of Container Division. Mixing Division uses all of the container plant's production. Each division (Mixing and Container) is considered a separate profit center and evaluated as such. As the new corporate controller, you are responsible for determining the proper transfer price to use for the bottles produced for Mixing Division. At your request, Container Division's general manager asked other bottle manufacturers to quote a price for the number and sizes demanded by Mixing Division. These competitive prices follow: Price per Total Price Case Volume $2,880,000 7.20 400,000 equivalent cases 5,000,000 800,000 6.25 6,480,000 1,200,000 5.40 a An equivalent case represents 24 bottles Container Division's cost analysis indicates that it can produce bottles at these costs: Cost per Volume Total Cost Case $2,400,000 6.00 400,000 equivalent cases 4,000,000 800,000 5.00 5,600,000 1,200,000 4.67