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Transfer Pricing Filmore Industries vertically integrated firm with several divisions that operate a decentrated profit centers one's Systems Division manufactures de instruments and use the
Transfer Pricing Filmore Industries vertically integrated firm with several divisions that operate a decentrated profit centers one's Systems Division manufactures de instruments and use the products of two of Fillmore's other divisions. The Board Division manufactures printed circuit boards (PC). One model is made for the Systems Division using proprintary owsigns, while less compitex models are sold in autside market. The products of the Transistor Caviton are cold in a well- developed competitive market; however, one transistor model is also used by the Systems Divion. The costa per unit of the products used by the Systems Division and as follows: PCB Translator Direct materials 50.40 $3:30 420 Direct labor 0.50 Variable overed 0.70 Fored overhead 0.30 0.70 Total 59.10 2,60 The Board Division sells its commercial product at all cost plus a 30 percent mark and believes the proprietary board made for the Systems Division would be for 512 per unit on the open market. The market price of the transistor used by the Systems Division 1 14.15 per unit. Required: 1. What is the minimum transfer price for the Transistor Division? Round your answer to the nearest cont. 43 Xperunt What is the maximul transfer price of the translate for the Systemblikon Round your rower to the heart cont Den 2. Assume the Systor Division is able to purchase Quantity of transistors from an outside source 2.50 per unit. Furthermometers Division DESCty can then I meet this
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