Question: Hi, can you please explain and answer this question thank you CoursHeroTranscribedText Question 34 1 points SAVED Drinks Ltd has two divisions: the Mixing Division

Hi, can you please explain and answer this question thank you

CoursHeroTranscribedText

Question 34 1 points SAVED Drinks Ltd has two divisions: the Mixing Division and the Bottle Division. The company is decentralised and each division is evaluated as a profit centre. The Bottle Division produces bottles that can be used by the Mixing Division. The Bottle Division's variable manufacturing cost per unit is $2.00 and shipping costs are $0.10 per unit. The Bottle Division's external sales price is $3.00 per unit. No shipping costs are incurred on sales to the Mixing Division. The Mixing Division can purchase similar bottles in the external market for $2.50. Assume the Bottle Division has no excess capacity and can sell everything produced externally. Using the general rule, the transfer price from the Bottle Division to the Mixing Division would be: OOOO $3.00 $2.90 $2.10 $2.50

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