For the first part of your assignment you will submit a complete sentence outline (NOT a topic outline or a written transcript!) You can review a sample outline of an….
what range would the transfer price fall in?
Doone, Inc., manufactures goods in its Sigma division that cost $40 per unit, plus fixed costs, to manufacture. The goods have a market price of $85 per unit. Sigma division has a manufacturing capacity of 10,000 units, all of which are currently transferred to the Epsilon division for use in the goods it manufactures. Epsilon division wants all of its parts to come from the same supplier, whether that is Sigma division or an outside supplier. Outside market demand is currently 6,000 units. In a negotiation, what range would the transfer price fall in?