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Southfield DIvision offers its product to outside markets for $ 1 3 5 . It Incurs varlable costs of $ 6 0 per unit and
Southfield DIvision offers its product to outside markets for $ It Incurs varlable costs of $ per unit and fixed costs of $ per month based on monthly production of units. Northfield DIvision can acquire the product from an alternate supplier for $ per unit or from Southwest Division for a transfer price of $ plus $ per unit in transportation costs.
Required:
a What are the costs and benefits of the alternatives avallable to Southfield DIvision and Northfield DIvision with respect to the
transfer of Southfield Division's product? Assume that Southfield Division can market all that it can produce.
b How would your answer change if Southfield Division had idle capacity sufficlent to cover all of Northfield Division's needs? The numerical answers I came up with are incorrect but the transfer or buy anwer on the right I have correct Please answer in a similar format to the question in the image Example a Net benifit $ per unit Sellbuy externally Thanks
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