Variable cost Full cost Market price $25.00 28.00 42.00 In addition, its capacity data follow: Capacity per year Current production level 40,000 putters 30,000 putters Required: 1. Assuming Grover produces 3,000 putters per year, determine the overall benefit of using putters from Birdie instead of purchasing them externally. 2. Determine the maximum price that the production facility would be willing to pay to purchase the putters from Birdie. 3. Determine the minimum that Birdie will accept as a transfer price. 4. Determine the mutually beneficial transfer price for the putters. (Round your answer to 2 decimal places.) 5. If Birdie were operating at capacity, what is the minimum price it would accept? Answer is complete but not entirely correct. Total savings with Birdie putters Maximum price Grover would pay Birdie Minimum price Birdie will accept Mutually beneficial price Minimum price Birdie would accept at capacity $ 51,000 $ 42 $ 25 $ 35.00 $ 42 Shaw is a lumber company that also manufactures custom cabinetry. It is made up of two divisions: Lumber and Cabinetry. The Lumber Division is responsible for harvesting and preparing lumber for use; the Cabinetry Division produces custom-ordered cabinetry. The lumber produced by the Lumber Division has a variable cost of $3.30 per linear foot and full cost of $4.30. Comparable quality wood sells on the open market for $9.90 per linear foot. Required: 1. Assume you are the manager of the Cabinetry Division. Determine the maximum amount you would pay for lumber. 2. Assume you are the manager of the Lumber Division. Determine the minimum amount you would charge for the lumber if you have excess capacity. Repeat assuming you have no excess capacity. 3. Assume you are the president of Shaw. Determine a mutually beneficial transfer price assuming there is excess capacity. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume you are the president of Shaw. Determine a mutually beneficial transfer price assuming there is excess capacity. (Enter your answers to 2 decimal places.) Mutually Beneficial Transfer Price