Bottle Division of TJR Company makes bottles that can either be sold to outside customers...
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Bottle Division of TJR Company makes bottles that can either be sold to outside customers or transferred internally. Last month, the Soda Division bought 3,000 from the Bottle Division for $27 each. Additional available information is:
Capacity 8,000 bottles
Selling Price per Bottle to Outside Customers $30
Variable Costs per Bottle Sold to Outside Customers $18
If an internal transfer is done, the company can save $1.50 on administrative expenses. An outside supplier has offered to supply bottles to the Soda Division for $25 each.
If 7,000 bottles can be sold externally, what is the transfer price range?
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