Resnor Inc. has two divisions. Division A makes a component that is used by Division...
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Resnor Inc. has two divisions. Division A makes a component that is used by Division B in producing its final product. Division A incurs the following per-unit costs for the component: Direct materials $2.10 Direct labor 1.30 Variable overhead 0.65 Fixed overhead 1.85 Total $5.90 Division A can make 700,000 components per year and is producing at capacity. Division B currently buys the component from an outside supplier for $6.75 per unit. Division A sells the component at the same price. Round your answers to two decimal places. A. The maximum transfer price per component is $ ; this price is set by Division B . . The minimum transfer price per component is $ ; this price is set by Division .
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