Spring corp has two divisions daffodil and tulip daffodil

Reference no: EM13574921

Spring Corp. has two divisions, Daffodil and Tulip. Daffodil produces a gadget that Tulip could use in its production. Tulip currently purchases 100,000 gadgets for $12.50 on the open market. Daffodil's variable costs are $6 per widget while the full cost is $9.35. Daffodil sells gadgets for $13 each. If Daffodil is operating at idle capacity, what would be the maximum transfer price Tulip would pay internally ?

Reference no: EM13574921

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