Compute the minimum transfer price that wildhorse should

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Question: Wildhorse Corporation manufactures wireless soundbar speakers. It is a division of Vany TV, which manufactures televisions. Wildhorse sells the speakers to Vany as well as to retail stores. The following information is available for Wildhorse's speaker: unit variable cost $68; unit fixed cost $56; and a unit selling price of $140 to outside customers. Vany currently purchases speakers from an outside supplier for $132 each. Top management of Vany would like Wildhorse to provide 50,000 speakers per year at a transfer price of $68 each.

(a) Compute the minimum transfer price that Wildhorse should accept assumping Wildhorse is operating at full capacity. Minimum transfer price $ (b) Compute the minimum transfer price that Wildhorse should accept assumping Wildhorse has sufficient excess capacity to provide the 50,000 speakers to Vany. Minimum transfer price $

Reference no: EM133445590

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