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The Engine division offa company manufactures small engines Fach engine incurs $85 of variable manufacturing costs and has a market price of $125! The Engine

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The Engine division offa company manufactures small engines Fach engine incurs $85 of variable manufacturing costs and has a market price of $125! The Engine division can make 31.000 units per year and has fixed costs of $510.900 per year 1. Assume the Engine division currently sells 24.800 engines per year and therefore has excess capacity. The Assembly division wants to buy 3100 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 3.100 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 al least but not inore than ? Transfer price per engine

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