The Tilton Division of CC Industries supplies the Dover Division with 98.000 units per month of an infrared LED that Dover uses in a remote control device itsells. The transfer price of the LED is $10, which is the market price. However, Tilton does not operate at or near capacity. The variable cost to Telon of the LED is $5.25, while Dover incurs variable costs (excluding the transfer price of $10 for each remote control. Dover's seling price is $34. Click on the Icon for more information) Required More information Dover's manager is considering a promotional campaign. The market research department of House has developed the following estimates of additional monthly volume associated with additional monthly promotional expenses Additional monthly promotional expertos $78,000 $116,000 Additional monthly volumno (units) 14,000 19,000 Requirement 1. What level of additional promotiona It is in Dover's interest to spend on promotional Requirement 2. As the manager of the Tilton divisio (Round the amount to the nearest dotar) Tilton's manager would like Dover to spend the high Requirement 3. As the president of CC Industries, y dollar) are Print Done The company would also like Dover to spend the ma mo Required - X tor 1. What level of additional promotional expenses would the Dover division manager choose? 2. As the manager of the silton division, what level of additional promotional expenses would you like to see the Dover division manager select? 3. As the president of CC Industries, what level of spending would you like the Dover division manager to select? 4. What is the maximum transfer price that would induce the Dover division to spend the optimal additional promotional expense from the standpoint of the firm as a whole? res visi of Print Done the Requirement 1. What level of additional promotional expenses would the Dover division manager choose? (Round amounts to the nearest dollar) It is in Dover's interest to spend on promotional expenses, thereby boosting profits by Il Requirement 2. As the manager of the Titon division, what level of additional promotional expenses would you like to see the Dover division manager select? (Round the amount to the nearest dollar.) Tilton's manager would like Dover to spend the highest amount. I. on additional promotional expenses to generate additional volume of units. Requirement 3. As the president of CC Industries, what level of spending would you like the Dover division manager to select? (Round the amount to the nearest dollar.) The company would also like Dover to spend the maximum amount .. on additional monthly promotional expenses. Requirement 4. What is the maximum transfer price that would induce the Dover division to spend the optimal additional promotional expense from the standpoint of the firm as a whole? (Round your answer to the nearest cont.) The maximum price that induces Dover to act in the best interest of the firm is $
