All cells Manufacturing is a division of Birch Communications, Inc. All cells produce cell phones and sell these phones to other communication companies, as well as to Birch. Recently, the vice president of marketing for Birch approached All cell with a request to make 20,000 units of a special cell phone that could be used anywhere in the world. The following information is available regarding the all cell division:

Selling price of regular cell phone . . . . . . . . . . $80

Variable cost of regular cell phone. . . . . . . . . . . 45

Additional variable cost of special cell phone. . . . 30

Calculate the minimum transfer price and indicate whether the internal transfer should occur for each of the following:

Answer rating: 100% (QA)

The marketing vice president offers to pay all cell... View the full answer