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Spirit Manufacturing is a division of Crane Communications, Inc. Spirit produces cell phones and sells these phones to other communication companies, as well as
Spirit Manufacturing is a division of Crane Communications, Inc. Spirit produces cell phones and sells these phones to other communication companies, as well as to Crane. Recently, the vice president of marketing for Crane approached Spirit with a request to make 25,200 units of a special cell phone that could be used anywhere in the world. The following information is available regarding the Spirit division: Selling price of regular cell phone $126 63 Additional variable cost of special cell phone 51 Variable cost of regular cell phone Indicate whether the internal transfer should occur for each of the following scenarios: The marketing vice president offers to pay Spirit $134 per phone. Spirit has available capacity. Calculate the minimum transfer price. Minimum transfer price $
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