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Sieman Company manufactures power tools. The Electric Drill Division (an investment center) can purchase the motors for the drills from the Motor Division (another investment
Sieman Company manufactures power tools. The Electric Drill Division (an investment center) can purchase the motors for the drills from the Motor Division (another investment center) or from an outside vendor. The cost to purchase from the outside vendor is $25. The Motor Division also sells to outside customers. The motor needed by the Electric Drill Division sells for $30 to outside customers and has a variable cost of $21. The Motor Division has excess capacity 21. If Sieman Company allows division managers to negotiate transfer prices, what is the minimum amount the manager of the Motor Division should consider? 22. What is the maximum transfer price the manager of the Electric Drill Division should consider? 21. If Sieman Company allows division managers to negotiate transfer prices, what is the minimum amount the manager of the Motor Division should consider? The Motor Division has excess capacity so the manager should consider a minimum transfer price of $21, its variable cost per unit. $25, the price the Electric Drill Division can purchase the motor for from an outside vendor. $30, the price that it can sell the motor to outside customers is the m Sieman Company manufactures power tools. The Electric Drill Division (an investment center) can purchase the motors for the drills from the Motor Division (another investment center) or from an outside vendor. The cost to purchase from the outside vendor is $25. The Motor Division also sells to outside customers. The motor Company the Motor needed by the Electric Drill Division sells for $30 to outside customers and has a variable cost of $21. The Motor Division has excess capacity ivision ha 21. IfSieman Company allows division managers to negotiate transfer prices, what is the minimum amount the manager of the Motor Division should consider? 22. What is the maximum transfer price the manager of the Electric Drill Division should consider? the maxim 21. If Sieman Company allows division managers to negotiate transfer prices, what is the minimum amount the manager of the Motor Division should consider? The Motor Division has excess capacity, so the manager should consider a minimum transfer price of um transfer 22. What is the maximum transfer price the manager of the Electric Drill Division should consider? ibed image test The maximum transfer price the manager of the Electric Dril Division should consider is text T t Answer $21, the Motor Division variable cost per unit $25, the price it can purchase the motor for from an outside vendor $30, the price that the Motor Division can sell the motor to outside customers 21) The Motor Equivalent to V. R nd10 AM
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