CALCULATOR MESSAGE MY UCTOR FULL SCREEN PRINTER VERSION BACK NEXT Your answer is partially correct. Try again. Gutierrez Company makes various electronic products. The company is divided into a number of autonomous divisions that can either sell to internal units or sell extemally. All divisions are located in buildings on the same piece of property. The Division has the Chip $21 supply for boards. It has been purchasing these chips for $22 per outside The Division for sales made to outside customers on this type of unit from Chip Division receives $22.50 per unit chip. The variable cost chips sold externally by the Chip Division is $14.5 It estimates that it will save $4.50 per chip of selling expenses on units sold internally to the Board Division. The Chip has excess (a) Calculate the minimum transfer price that the Chip Division should accept. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price 18 Should Chip Division accept the offer? Yes (b) suppose that the Chip Division decides to reject the offer. What are the financial implications for each division, and for the company as a whole, of this decision? 7,50 Lost contribution margin by Board Division Total l. Lost contribution margin by Chip Division 15.50 Overall Lost contribution margin for the company Version 4.22.2.9 Privacy Policy I 20oo-2012 2ohn wil s Sons, inc. All Rights Reserved. A Division of ohn wley s sons.uns