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The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trallers have a market price

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The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trallers have a market price of $200 each, Each traler incurs $80 of variable manufacturing costs. The Trailer division has capacity for 40,000 trallers per year and has fixed costs of $1,000,000 peryear 1. Assume the Assembly division of Baxter Bicycies wants to buy 15,000 trailers per year from the Traller civision. If the Traller division can sell all of the trallers it manufactures to outside customers (and has no excess capacity), what price should be used on transfers between divisions? 2. Assume the Traller division currently only sells 20,000 trailers to outside customers and has excess capacity. The Assembly division wants to buy 15,000 trailers per year from the Trailer division. What is the range of acceptable prices on transfers between divisions

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