Pina Colada Company's Small Motor Division manufactures anumber of small motors used in household and office appliances. TheHousehold Division of Pina Colada then assembles andpackages such items as blenders and juicers. Both divisions arefree to buy and sell any of their components internally orexternally. The following costs relate to small motor LN233 on aper unit basis.
Unit fixed cost
Unit variable cost
Unit selling price
Assuming that the Small Motor Division has excess capacity,compute the minimum acceptable price for the transfer of smallmotor LN233 to the Household Division. (Roundanswer to 2 decimal places, e.g. 10.50.)
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Assuming that the Small Motor Division does not have excesscapacity, compute the minimum acceptable price for the transfer ofthe small motor to the Household Division. (Roundanswer to 2 decimal places, e.g. 10.50.)
Pina Colada Company's Small Motor Division manufactures a number of small motors used in household and office appliances
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