Transfer Pricing: Various Computations Coening Compary has a deckentralized organizetion with a divisional structure. Two of these divisions are the Appliance Oivision and the Manufsctured ilousing Division. Each divisional manager is evalusted on the basis of Ro4. The Applisnce Olvision produces 8 *maft automatic dishwasher that the Manufactured Housing Division can use in ane of its modets, Aspliance can produce up to 21,000 of these dishwashers per vear. The variable costs of manulocturing the dishwashers are $94. The Manufactured Housing Division inserts the sishwasher into the model house and then sells the manufactured house to outside castamers for $72,000 esch. The dhis/on's capacity is 3,780 units. The variabie conts of the manufactured house (in addition to the cost of the dishwasher itsein) are $46,000. Required: -Assume each part is independent, unless othenwise indicated. 1. Assume that alf of the Cishwashers prosuced can be sold to external customers for $324 each. The Manufactured Housing Division wants to buy 3 , reo dishiwashers per year. What should the transfer price be? s per unit 2. Reler to Requirement 1. Assume 526 of avoidable distribution cests, Idenuty the mumimum and minimum transfer prices. 3. Assume that the Appliance Division is operating at 75 percent capacty, The Manufactured Housing Divisibn is currendly buying 3 , 780 dishashers from an outside supolier for 5280 each, Assume that any joint benefie will be split evene, between the two divisions. What is the expected transfer prike? s. per unit (in addition to the cost of the dishwasher lasein are $46,000. Required: Assume each part is independent, unless otherwse indicated. 1. Assume that all of the dishwashen produced can be sold to externat astomers for $324 each. The Manufactured Housing Oivision warts to buy 3,7e0 dishwashers per yeac. What should the transfer price te? 4 per uhit Maxinum : Viper unit Minimum 1 per unit 1 per unit supplier for $28 each. Assume that any joins benefit wir be spat evenly between the two divions. What is the expected transfer peice? \$. perinit How much with the profits of the Appliance Division increase, assuming that if selis the extre 3,280 dishwashers internaliv? s. How much will the profis of the firm increase undec this arrangement? 5 x