Sunland Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its

return on investment. Vancouver has the capacity to manufacture $180,000$ units of component TR$222.$ Vancouver's variable costs are

$$158$ per unit. Kamloops uses component TR$222$ in one of its products. Kamloops adds $$98$ of variable costs to the component and

sells the final product for $$450.$

Consider the following independent situations:

Your answer is correct.

Vancouver can sell all $180,000$ units of TR$222$ on the open market at a price of $$250$ per unit. Kamloops is willing to buy $18,000$ of

those units.

What should the transfer price be$?$

Transfer price

per unit

eTextbook and Media

Your answer is correct.

Of the $180,000$ units of component TR$222$ it can produce, Vancouver can sell $126,000$ units on the open market at a price of $$250$

per unit. Kamloops is willing to buy an additional $18,000$ units.

What should the minimum transfer price be$?$

Minimum transfer price

per unit

eTextbook and Media

Your answer is incorrect.

Of the $180,000$ units of component TR$222$ it can produce, Vancouver can sell $144,000$ units on the open market at a price of $$250$

per unit. Kamloops is willing to buy an additional $54,000$ units.

What should the transfer price be$?($Round answer to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$