An appropriate range of transfer prices between two divisions of Vandreumel Company can be determined...
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Accounting
An appropriate range of transfer prices between two divisions of Vandreumel Company can be determined from the following data: Motor Division: Market price of the motors to be transferred $50 per unit Variable cost of producing the motors to be transferred $20 per unit Available capacity in units 1,000 units Fan Division Number of motors needed 900 units Market price from external supplier of the motors $50 per unit If the two managers are going to negotiate the transfer price, what is the appropriate bargaining range? Select one a Between $50 and $70 b. Any amount less than $50 c. $50 is the only acceptable price d. Between $20 and $50 a
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