Wigelsworth Products, Incorporated, has a Sensor Division that manufactures and sells a number of products, including a
Posted: Sat May 07, 2022 8:42 pm
Wigelsworth Products, Incorporated, has a Sensor Division that
manufactures and sells a number of products, including a standard
sensor. Data concerning that sensor appear below:
The Safety Products Division of Wigelsworth Products,
Incorporated needs 6,000 special heavy-duty sensors per year. The
Sensor Division's variable cost to manufacture and ship this
special sensor would be $32 per unit. Because these special sensors
require more manufacturing resources than the standard sensor, the
Sensor Division would have to reduce its production and sales of
standard sensors to outside customers from 89,000 units per year to
79,400 units per year.
From the standpoint of the Sensor Division, what is the minimal
acceptable transfer price for the special sensors for the Safety
Products Division?
manufactures and sells a number of products, including a standard
sensor. Data concerning that sensor appear below:
The Safety Products Division of Wigelsworth Products,
Incorporated needs 6,000 special heavy-duty sensors per year. The
Sensor Division's variable cost to manufacture and ship this
special sensor would be $32 per unit. Because these special sensors
require more manufacturing resources than the standard sensor, the
Sensor Division would have to reduce its production and sales of
standard sensors to outside customers from 89,000 units per year to
79,400 units per year.
From the standpoint of the Sensor Division, what is the minimal
acceptable transfer price for the special sensors for the Safety
Products Division?