Question
TKTK Electronics is a manufacturer with two departments: Computer Chips and Cell Phones. The computer chip that is produced in the Chips Department can be
TKTK
Electronics is a manufacturer with two departments: Computer Chips and Cell Phones. The computer chip that is produced in the Chips Department can be sold to customers at
$ 6.25$6.25
per chip. The costs associated with the computer chips are as follows:
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(Click the icon to view the costs.)The Cell Phone Department has been purchasing the chips that it needs for
$ 4.00$4.00
per chip from
Chips Upper R UsChips R Us,
but the manager was thinking that if the Chips Department could supply the chips for less than what
Chips Upper R UsChips R Us
is asking, then it would arrange a transfer between departments instead of giving the business to an external company.
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