Question: The Fabricating division makes a component part that the Assembly division needs for a new product. The Fabricating divisions variable cost of manufacturing the component

The Fabricating division makes a component part that the Assembly division needs for a new product. The Fabricating divisions variable cost of manufacturing the component is $30 per unit. The component is also available on the open market at a price of $58 per unit. The Assembly division needs 906 units per year, and the Fabricating division has excess capacity of 1,150 units. (a) Calculate the cost-based transfer price that the Fabricating division should charge the Assembly division.

Cost based transfer price

$enter the cost based transfer price in dollars

(b) Calculate the market-based transfer price that the Fabricating division should charge the Assembly division.

Market based transfer price

$enter the market based transfer price in dollars

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