The national division of Crane International Company is buying $20,900$ widgets from an outside supplier at $$77$ per unit. Crane

International's overseas division, which is producing and selling widgets at full capacity $(26,500$ units$),$ has the following sales and cost

structure:

$($a$)$

$$ Your answer is correct.

Determine the minimum transfer price if the national division buys $5,130$ widgets from the overseas division.Determine the minimum transfer price if the national division buys $5,130$ widgets from the overseas division.

Minimum transfer price

$

per unit

eTextbook and Media

Attempts: $1$ of $3$ used

$($b$)$

Determine the effect on overall company profits if the overseas division meets the outside supplier's price and sells the $5,130$

widgets to the national division.

Company profits

by $