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Transter Pricing, Idle Capacity Farm's Jams Division. Sales and cost data on a case of 24 basic 12-ounce bottles are as follows: the savings by
Transter Pricing, Idle Capacity Farm's Jams Division. Sales and cost data on a case of 24 basic 12-ounce bottles are as follows: the savings by offering a $0.07 discount on the usual price. Required: 1. What is the minimum transfer price that the Glassware Division would be willing to accept? Round to the nearest cent. per unit What is the maximum transfer price that the Jams and Jellies Division would be willing to pay? Round to the nearest cent. per unit Should an internal transfer take place? What would be the benefit (or loss) to the firm as a whole if the internal transfer takes place? When required, round your answer to the nearest dollar. $ 2. Suppose Paul knows that the Glassware Division has idle capacity. Do you think that he would agree to the transfer price of $3.03 ? Suppose he counters with an offer to pay $2.60. If you were Bella, would you be interested in this price? per unit
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