Business, 04.12.2019 02:31 irene1806

Ganus products, inc., has a relay division that manufactures and sells a number of products, including a standard relay that could be used by another division in the company, the electronics division, in one of its products. data concerning that relay appear below: capacity in units 37,500 selling price to outside customers $ 29 variable cost per unit $ 9 fixed cost per unit (based on capacity) $ 18 the electronics division is currently purchasing 5,250 of these relays per year from an overseas supplier at a cost of $26 per relay. assume that the relay division is selling all of the relays it can produce to outside customers. also assume that $7 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs. does there exist a transfer price that would make both the relay and electronics division financially better off than if the electronics division were to continue buying its relays from the outside supplier?

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Ganus products, inc., has a relay division that manufactures and sells a number of products, includi...

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