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What is the minimum price that the airbag division transfer

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Reference no: EM132968990

Question - Freddie motors Inc. operates as a decentralized multidivisional company. The Igo division of Freddie motors Inc. purchases most of its airbags from the Airbag division. The Airbag division incremental cost for manufacturing an airbag is $110 per unit. The Igo division has requested the Airbag division to transfer an additional 40,000 units for the next year.

Required - What is the minimum price that the airbag division would transfer the additional airbags requested by the Igo Division?

Reference no: EM132968990

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