Question: Need Help with Part D. the answer is not $20-$30 or 2.0-3.0. what would the range be? if it is not 20-30? (It says round
Materials used by Ford Company in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. However, the same materials are available from Division B. Division B has unased capacity and can produce the materials needed by Division A at a variable cost of 520 per unit. a. If a transfer price of $25 per unit as established and 60,000 units of material are transferred with no reductions in Division B's current saies, how much would Ford Company's total operating income increase? b. How much would the operating income of Division A increase? c. How much would the operating income of Division B increase? d. If the negotiated price approach is used, what would be the range of acceptable transfer prices? Round your answer to two decimal places. x to 3 x
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