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Transfer Pricing, tdle Capacity Asgard Farms, Inc., has a number of divisions that produce jams and jellies, condiments and giassware. The Glassware Division manufactures a variety of bottles that can be sold externaly (to soft-drink and juice betbers) or internally to Asgard Farm's Jams Division, Sales and cost cata on a case of 24 basic 12 -cunce beters are as folionsi Pracucer cepacty in cases 500,000 4$375,000/500,000 During the coming yeap, the Classware Division expects to sell 370,000 cases of this bottle. The Jartis and Jelies Divisian currenty plans to buy 113,150 cases on the outside market for $2.50 each. Betia Howard, manager of the Glossware Division, approached Paul Vining, manager of the Jams and Jeliks Division, and offered to sell the 1.13,150 cases for 52.73 esch. Bects expleined to Paul that she can avoid selling costs of $0.14 per case by seiling internally and that she would split the savings by. offering a $0,07 discount on the uwal price. Required: 1. What is the minimum transfer price that the Giassware Division would be willing to accept? Round to the nearest ceat. per ur th What is the maxim irti transfer price that the Jamt and Jelies Division would be wilting to par? Round to the nearest cent. * perunit Should an internst trensfer take plate? What would be the benefit (or loss) to the firm as a whole if the intemal transter takes ploce? When required, round your answer to the nearest dollar. Should an internal transfer take place? What would be the benefit (or loss) to the firm as a whole if the intemal transfer takes place? When required, round your answer to the nearest dollar. 2. Suppose Paul knows that the Glassware Division has idle capocity. Do you think that he would agree to the transfer price of $2.73 ? Suppose he counters with an offer to pay $2.27. If you were Bells, would you be interested in this price? 3. Suppose that Asgard Farm's policy is that all internal transfers take place at full manufacturing cost, What would the transer price. be? Round to the nearest cent. 1 per unt. Would the transfer take place

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