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(Appendix 12A)Division 1 of Ace Company Makes and Sells Wheels

question 20

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(Appendix 12A) Division 1 of Ace Company makes and sells wheels that can either be sold to outside customers or transferred to Division 2.The following data are available from last month: Division 1: (Appendix 12A) Division 1 of Ace Company makes and sells wheels that can either be sold to outside customers or transferred to Division 2.The following data are available from last month: Division 1:   Division 2:   If Division 1 sells the wheels to Division 2, Division 1 can avoid $2 per unit in sales commissions. What is the maximum price per wheel that Division 2 should be willing to pay Division 1 if a transfer were to take place? A) $33 per unit B) $35 per unit C) $47 per unit D) $50 per unit Division 2: (Appendix 12A) Division 1 of Ace Company makes and sells wheels that can either be sold to outside customers or transferred to Division 2.The following data are available from last month: Division 1:   Division 2:   If Division 1 sells the wheels to Division 2, Division 1 can avoid $2 per unit in sales commissions. What is the maximum price per wheel that Division 2 should be willing to pay Division 1 if a transfer were to take place? A) $33 per unit B) $35 per unit C) $47 per unit D) $50 per unit If Division 1 sells the wheels to Division 2, Division 1 can avoid $2 per unit in sales commissions.
What is the maximum price per wheel that Division 2 should be willing to pay Division 1 if a transfer were to take place?


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