What is the price range within which toyota accessories division would sell its roof racks to the toyota sales division and what would be mitigated by sourcing it internally?

What is the best transfer price to toyota overall if Toyota accessories division is operating all full capacity and the roof racks could have been sold on the open market?

with respect to your response to part 1 and 2 above briefly outline the relevance of capacity in transfer pricing situation

AutoSave On PC File Comments Share Find - Replace Select Dictate Paste Title H2U8 Document2 - Word prakriti chaudhary Home Insert Draw Design Layout References Mailings Review View Help Search X Cut Calibri - 12 - A A A A 211 AaBbccdc AaBbcc Aabbcci AaB AaBbcc [Copy BIU - # X X AD. A 1 No Spac... Heading 1 Heading 2 Subtitle Format Painter clipboard Paragraph Styles Toyota Accessories Division (a division within Toyota) produces roof racks for Toyota's RAV4 range. The division operates as a profit centre within the parent company. It also sells its roof racks to other SUV manufacturers (external customers). The current selling price for Toyota's roof racks is $375. Font Editing Voice The head of Toyota's Sales Division's performance is measured based on meeting tight profit targets. With the current competitive environment she is looking for ways to cut costs and increase her profit and in turn her bonus. She finds another (external) roof rack manufacturer who will sell 60 000 roof racks for $250 as a result of a quantity discount. Toyota Accessories Division has adequate capacity to supply the needs of Toyota. The following data are for Toyota Accessories Division: Direct material Direct labour Variable overhead Fixed overhead (based on a capacity of 60 000 units) $50 per unit $75 per unit $20 per unit $6 per unit (Ctrl EE + 10096 Page 1 of 1 O words English (Australia) Type here to search O et e ENG 10:56 AM 3/06/2020 5