Buzz's Florida Division is currently purchasing a part from an outside supplier....
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Buzz's Florida Division is currently purchasing a part from an outside supplier. The company's Georgia Division, which has excess capacity, makes and sells this part for external customers at a variable cost of $27 and a selling price of $39. If Georgia begins sales to Florida, it (1) will use the general transfer pricing rule and (2) will be able to reduce variable cost on internal transfers by $4. If sales to outsiders will not be affected, Georgia would establish a transfer price of: 8 04:51:20 Multiple Choice 0 $23. 0 $27. 0 $35. 0 $39. 0 None of the answers is correct. 15 Darrin's Auto Northern Division is currently purchasing a part from an outside supplier. The company's Southern Division, which has no excess capacity, makes and sells this part for external customers at a variable cost of $26 and a selling price of $38. If Southern begins sales to Northern, it (1) will use the general transfer- pricing rule and (2) will be able to reduce variable cost on internal transfers by $3. On the basis of this information, Southern would establish a transfer price of: (8 04:51:10 Print O O O O O None of the answers is correct
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