Tata Group has many subsidiaries. The managers of two subsidiaries, Ibrahim and Maria, come together to...

 

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Tata Group has many subsidiaries. The managers of two subsidiaries, Ibrahim and Maria, come together to make a deal on the price of decorative lamps, Ibrahim can purchase the lamps from another company at $79. Maria can sell the lamps at $60 and the variable cost of the lamp is $48. a.) If Maria's company has excess capacity, what might be the deal price? b.) If Maria's company doesn't have excess capacity, what might be the deal price? c) If Ibrahim wants to buy 1500 special lamps and wants some special additions to the lamp which cause $6 increase in cost. Maria needs to forgo the sales of 2000 regular lamps if she accepts this offer. What is the minimum transfer price for Maria? Tata Group has many subsidiaries. The managers of two subsidiaries, Ibrahim and Maria, come together to make a deal on the price of decorative lamps, Ibrahim can purchase the lamps from another company at $79. Maria can sell the lamps at $60 and the variable cost of the lamp is $48. a.) If Maria's company has excess capacity, what might be the deal price? b.) If Maria's company doesn't have excess capacity, what might be the deal price? c) If Ibrahim wants to buy 1500 special lamps and wants some special additions to the lamp which cause $6 increase in cost. Maria needs to forgo the sales of 2000 regular lamps if she accepts this offer. What is the minimum transfer price for Maria?