Freddie motors Inc. operates as a decentralized multidivisional company. The Igo division of Freddie motors Inc. purchases
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Freddie motors Inc. operates as a decentralized multidivisional company. The Igo division of Freddie motors Inc. purchases most of its airbags from the Airbag division. The Airbag division incremental cost for manufacturing an airbag is $110 per unit. The Igo division has requested the Airbag division to transfer an additional 40,000 units for the next year. Required: a. What is the minimum price that the airbag division would transfer the additional airbags requested by the Igo Division?
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