Question: Asking about this question below. Please give me detail explanations and right answers. Thanks so much! Quest Motors manufactures airbags. Division A operates at full

Asking about this question below. Please give me detail explanations and right answers. Thanks so much!

Asking about this question below. Please give me
Quest Motors manufactures airbags. Division A operates at full capacity and can manufacture 500 airbags a month. The variable manufacturing cost to Division A is $108 per airbag. Division A can sell airbags in the marketplace for $200 each. If sold in the marketplace, Division A incurs a shipping cost of $30 per airbag. The alternative is to transfer the airbags to Division B. Division B can acquire airbags from external suppliers at a cost of $180 each plus a $2 environmental levy. Required a. Using the general transfer pricing guideline, what is the minimum price Division A should take for the airbags if sold to Division B? b. What is the maximum transfer price Division B is willing to pay Division A for the airbags? c. Assume instead, that Division A can only sell 60% of the airbags produced. What is the minimum transfer price Division A would accept from Division B

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