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Question 6. Ran Product Inc., has a Valve Division that manufactures and sells a standard Valve. The company has a Pump Division that could use
Question 6. Ran Product Inc., has a Valve Division that manufactures and sells a standard Valve. The company has a Pump Division that could use this valve in one of its pumps. The Pump Division is currenty purchasing 9000 valves per year from an overseas supplier at a cost of $30 per valve. Required 1. Assume that Valve Division has enough idle capacity to handle all the Pump Division's need. What is the acceptable range, if any, for the transfer price between the two divisions? 2. Assume that the Valve division is selling all of the valves that it can produce to outside custorners. What is the acceptable range, if any, for the transfer price between the two dlvisions
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