Question: Exercise 9-20B Determining transfer prices LO C2 The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or
Exercise 9-20B Determining transfer prices LO C2 The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The retail price of $108 each. Each trailer incurs $49 of variable manufacturing costs. The trailer division has capacity for 28,000 trailers per year and incurs fixed costs of $490,000 per year Bicycles wants to buy 4 700 trailers per year from the trailer division. If the trailer division outside c can sell all of the trailers it ufactures to outside customers, what price should be used on transfers between Baxter Bicycless 2. Assume the trailer division currently only sells 9.400 trailers to outside customers, and the assembly division wants to buy 4.700 is the range of acceptable prices that could be used on transfers between Baxter
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