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TR Electronics is a manufacturer with two departments: computer chips and cell phones. The computer chip that is produced in the Chips Department can be
TR 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 per chip. The costs associated with the computer chips are as follows: rew the combuter chio costs The Cell Phone Department has been purchasing the chips that it needs for $4.00 per chip from CyberChips, but the manager was thinking that if the Chips Department could supply the chips for less than what CyberChips is asking. then it would arrange a transfer between departments instead of giving the business to an external company. If the Cell Phone Department needs 150,000 computer chips and current production in the Chips Department is 300,000 chips, should a transfer take place? If so, at what price? (Note: For internal transfers.)the selling and administrative costs are reduced to $1.05 per unit.) What other qualitative factors might need to be considered? First, let's determine if a transfer should take place by determining the minimum transfer price. (Round your answer to the nearest cent.) What is the minimum transfer price? Should the internal transfer take place? Computer chip costs
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