[The following information applies to the questions displayed below.]

Milwaukee Metallurgy Corporation (MMC) has two divisions. The Fabrication Division transfers partially completed components to the Assembly Division at a predetermined transfer price. The Fabrication Divisions standard variable production cost per unit is $510. The division has no excess capacity, and it could sell all of its components to outside buyers at $690 per unit in a perfectly competitive market.

Required information: Use the general economic rule to set an optimal transfer price.

Required:

1.	Determine a transfer price for MMC using the general rule.

2.	What would be the transfer price if the Fabrication Division had excess capacity?

NOTE: Answers to be brief only numbers

Determine a transfer price for MMC using the general rule. Transfer price