TZ 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 $7.25 per chip. The costs associated with the computer chips are as follows: 5 Click the icon to view the costs.) The Cell Phone Department has been purchasing the chips that it needs for $5.00 per chip from Chip World, but the manager was thinking that if the Chips Department could supply the chips for less than what Chip World 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. Begin by determining the minimum transfer price. Costs The minimum transfer price is $ $ 3.30 $ Variable manufacturing costs Variable selling and administrative costs Capacity Current production 1.60 500,000 units 500,000 units Print Done