TK Electronics is a manufacturer with twodepartments: computer chips and cell phones. The computer chip that is produced in the Chips Department can be sold to customers at$5.00 per chip. The costs associated with the computer chips are asfollows:

X Computer chip costs Variable manufacturing costs . . . . . 2.40 Variable selling and administrative costs . $ 0.80 Capacity . . . . . 500,000 units Current production . . . .. 500,000 unitsFirst let's determine ifa transfer should take place. Begin by determining the minimum transfer price. {Round your answer to the nearest cent} The minimum transfer once is 35D. The intemal transfer T take place. The price for the intemal transfer should fall between $D and $D. What other qualitative factors might need to be considered? Other factors to consider would be the relationship that the Cell Phone Division has with its : If the Chips Division is only able to transfer chips : will the Cell Phone Division be able to V for additional orders? The Chips Division may also require some downtime for equipment maintenance or other things {perhaps summer vacations for employees, for example} and a reduced workload for a short period may be I V