Creaser Products, Inc., has a Sensor Division that manufactures and sells a number of products, including a standard sensor. Data concerning that sensor appear below:
The company has a Safety Products Division that could use this sensor in one of its products. The Safety Products Division is currently purchasing 8,000 of these sensors per year from an overseas supplier at a cost of $76 per sensor.
Required:
The Sensor Division is selling all of the sensors it can produce to outside customers. Also assume that $10 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs. What is the acceptable range, if any, for the transfer price between the two divisions?
Definitions:
Alzheimer's disease
A progressive neurodegenerative disorder characterized by memory loss, cognitive impairment, and changes in behavior.
Neuronal functioning
The operational activities of neurons, including signal transmission and communication within the brain and nervous system.
Breakdown of myelin
The deterioration or destruction of myelin, the protective sheath covering nerve fibers, which can lead to neurological disorders and impairments in signal transmission.
Reduction in dendrites
A process involving the decrease in the branched projections of neurons, potentially affecting neural connectivity and function.
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