Reference no: EM133399958

Question

Swifty corporation manufactures and selld high-priced motorcycles. the engine division produces and sells engines to other motorcycle companies and internally to its production division. it has been decided that the engine division will sell 30000 units to the production division at $1050 a unit. THe engine division currently operating art full capacity has unit selling price of $3250 and unit variable costs and fixed costs of 1050 and 600 respectively. THe production division is currenly paying 3100 per unit to an outside supplies. of the amount 90 per unit can be saved on internal sales from reduced selling expenses. what is the minimum transfer price that the engine division should accept.