Southwest Division offers its product to outside markets for $51 It incurs variable costs of $37 per unit and fixed costs of $48,000 per month based on monthly production of 6,100 units Northeast Division can aoquire the product from an alternate supplier for $73 per unit or from Southwest Division for a transfer price of $51 plus $2 per unit in transportation costs Required a What are the costs and benefits of the altematives available to Southwest Division and Northeast Division with respect to the transfer of Southwest Division's product Assume that Southwest Division can market all that it can produce t benefit r unit b How would your answer change if Southwest Division had idle capacity sufficient to cover all of Northeast Division's needs t benefit r unit

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Southwest Division offers its product to outside markets for $51  It incurs variable costs of $37 per unit and fixed costs of $48,000 per month based on monthly production of 6,100 units  Northeast Division can aoquire the product from an alternate supplier for $73 per unit or from Southwest Division for a transfer price of $51 plus $2 per unit in transportation costs  Required a  What are the costs and benefits of the altematives available to Southwest Division and Northeast Division with respect to the transfer of Southwest Division's product  Assume that Southwest Division can market all that it can produce t benefit r unit b  How would your answer change if Southwest Division had idle capacity sufficient to cover all of Northeast Division's needs  t benefit r unit

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Southwest Division offers its product to outside markets for $51. It incurs variable costs of $37 per unit and fixed costs of $48,000 per month

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