Question: Ute Semi-Conductor Company Problem #1 superchips Ute Semi-conductor Ute Mini-computer superchips External market Superchip Variable cost $230 Selling price $400 Market Demand 20,000 Hours/unit to

Ute Semi-Conductor Company Problem #1 superchips Ute Semi-conductor Ute Mini-computer superchips External market Superchip Variable cost $230 Selling price $400 Market Demand 20,000 Hours/unit to produce 4 Max 25K Production capacity of semi-conductor = 100,000 hours Ute has a 100% owned subsidiary that wants to purchase super chips. What should Ute establish as the Transfer Price Poicy under the Optimum Transfer Pricing method? 2

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