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Problem 8-6A Devices a division of worldwide Communications, Inc. CD produces pagers and other personal communication devices. These devices are sold to other worldwide divisions,

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Problem 8-6A Devices a division of worldwide Communications, Inc. CD produces pagers and other personal communication devices. These devices are sold to other worldwide divisions, as well as to other communication companies. was by manager Personal Communications Division regarding a approached the request to make a special pager designed to receive signals from anywhere in the world. Personal Communications Division has requested that CD produce 10,000 units of this special pager. The following The facts available the Comm Devices Division Selling price of standard pager $99 Variable cost of standard pager $49 Additional variable cost of special page $38 For each of the following independent situations, calculate the minimum transfer price and determine whether the Personal Communications Division should accept or reject the offer. The Personal Communications Division has offered to pay the CD Division $112 per pager. The CD on has no available capacity. The CD Division would have to forgo sales of 8,000 pagers to existing customers in order to meet the request of the Personal Communications Division. Minimum transfer price Personal Communications Division should reject e offer. (b) The Personal Communications Division has offered to pay the CD Division $150 per pager, The CD Division has no available capacity The CD Division would have to forgo sales of 14,025 pagers to existing customers in order to meet the request of the Personal Communications Division. (Round answer to o decimal places e 125.) Minimum transfer price

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