Transfer Pricing: Various Computations

Required:

Assume each part is independent, unless otherwise indicated.

$$,|$ per unit

Refer to Requirement $1.$ Assume $$26$ of avoidable distribution costs. Identify the maximum and minimum transfer prices.

Identify the actual transfer price, assuming that negotiation splits the difference.

per unit

per unit

How much will the profits of the Appliance Division increase, assuming that it sells the extra $5,700$ dishwashers internally?

$

How much will the profits of the firm increase under this arrangement?