$($i$)$

Case $11-26($Algo$)$ Transfer Pricing; Divisional Performance $[$LO$11-3]$

Weller Industries has six divisions. Its Electrical Division $($which is operating at capacity$)$ produces a variety of electrical items, including an $x52$ electrical fitting that it sells to regular customers for $$8\mathrm{.}70$ each. The fitting has a variable manufacturing cost of $$4\mathrm{.}80.$

The company's Brake Division wants the Electrical Division to provide a large quantity of X$52$ fittings for $$6\mathrm{.}70$ each. The Brake Division, which is operating at $50\%$ of capacity, will put the fitting into a brake unit it produces and sells to an airplane manucturer. The cost of the brake unit being built by the Brake Division follows:

$\backslash$table$[[,$$$23\mathrm{.}80$