Required

What is the highest price that the managers of the Mobile Phone Division would want to pay the Chip Division for the chip?(Round answer to 0 decimal places.)

$

CoursHeroTranscribedText

Choice of transfer price The following information relates to a new computer chip that Hand Held has developed for its new Mobile mobile that contains a personal organiser: CHIP DIVISION Market price of finished chip to outsiders Variable cost per unit Contribution margin Total contribution for 30,000 units Mobile PHONE DIVISION Market price of finished products Variable costs: From Chip Division Other direct materials Mobile Phone Division Assembly Packaging Contribution margin $24 12 $12 $360,000 $128 50 450 12 38 20 $ 8 Total contribution for units $160,000 The variable costs of the Mobile Phone Division will be incurred whether it buys from the Chip Division or from an outside supplier. Required What is the highest price that the managers of the Mobile Phone Division would want to pay the Chip Division for the chip? (Round answer to 0 decimal places.) $