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The Engine division of a company manufactures small engines. Each engine incurs $100 of variable manufacturing costs and has a market price of $140. The

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The Engine division of a company manufactures small engines. Each engine incurs $100 of variable manufacturing costs and has a market price of $140. The Engine division can make 34,000 units per year and has fixed costs of $540,000 per year. 1. Assume the Engine division currently sells 27,200 engines per year and therefore has excess capacity. The Assembly division wants to buy 3,400 engines per year. What is the range of acceptable prices on engine transfers from the Engine division to the Assembly division? 2. Assume the Engine division has no excess capacity and can sell all it manufactures to outside customers. The company's Assembly division wants to buy 3,400 engines per year from the Engine division. What price should be used on engine transfers from the Engine division to the Assembly division? 1. Transfer price per engine will be at least but not more than 2. Transfer price per engine

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