The Transformer Division of Lorman Industries Produces Transformers That Can

question 122

Essay

The Transformer division of Lorman Industries produces transformers that can be sold to outside customers or transferred to the Electronics division of the company.The following information has been collected by Lorman's controller:
Production capacity 100,000
a.If the Transformer division can only sell 80,000 units to outside customers,what is the lowest acceptable transfer price that it is willing to accept for the 6,000 units?
b.If the Transformer division can sell all 100,000 units to outside customers,list three courses of actions that the division might consider to provide the units to Electronics.

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Definitions:

Selling Situation

The circumstances and environment in which a sales interaction takes place, influencing strategies and outcomes.

Product Satisfaction

The level of contentment a consumer has with the performance and quality of a purchased product.

Organizational Sale

A complex sales process that involves selling products or services to large organizations rather than individual consumers.

Order-Getters

Salespeople who get new and repeat business using a creative sales strategy and a well-executed sales presentation.