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The Calculator Division of Henderson Company manufactures handheld calculators. The Calculator Division can either purchase batteries from an outside vendor for $5 per battery or

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The Calculator Division of Henderson Company manufactures handheld calculators. The Calculator Division can either purchase batteries from an outside vendor for $5 per battery or from the Battery Division of Henderson Company. They require 5,000 batteries per period. The Battery Division sells the batteries to outside customers for $6 per battery. They have been selling 15,000 batteries per period. Their variable costs are $3 per battery and their fixed costs are $1 per battery. Required: 1. What is the maximum transfer purchase price that the Calculator Division would pay for batteries (type in the dollar amount per battery) 2. For each case below, determine the minimum transfer selling price the Battery Division would accept and whether a negotiated price will be reached between the two managers. Case 1 The Battery Division has a maximum capacity of 25,000 batteries. The minimum transfer selling price that the Battery Division would accept is (type in the dollar amount per battery) Will a transfer price be negotiated between the manager of the Casc1 The Battery Division has a maximum capacity of 25,000 batteries. The minimum transfer selling price that the Battery Division would accept is (type in the dollar amount per battery) Will a transfer price be negotiated between the manager of the Household Division and the Battery Division? (type in yes or no) Case 2 The Battery Division has a maximum capacity of 15,000 batteries. The minimum transfer selling price that the Battery Division would accept is (type in the dollar amount per battery) Will a transfer price be negotiated between the manager of the Household Division and the Battery Division? (type in yes or no) Case 3 The Battery Division has a maximum capacity of 18,000 batteries. The minimum transfer selling price that the Battery Division would accept is (type in the dollar amount per battery) Will a transfer price be negotiated between the manager of the Household Division and the Battery Division? (type in yes or no)

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