Zumsteg Products, Incorporated, has a Pump Division that manufactures and sells a number of products, including a standard pump.Date concerning that pump appear below:Capacity in unitsSelling price to outside customersVariable cost per unitFixed cost per unit (based on capacity)72,800#10670.0$20The company has a Pool Products Division that could use this pump in one of its products. The Pool Products Division is currentlypurchasing 8,800 of these pumps per year from an overseas supplier at a cost of $99 per pump.Required:Assume that the Pump Division has enough Idle capacity to handle all of the Pool Products Division's needs. What is the acceptableange, If any, for the transfer price between the two divisions?Note: Round your answers to 1 decimal place.

Transfer price is the price at which one division transfers goods to the other division of the same…

Required: Assume that the Pump Division has enough Idle capacity to handle all of the Pool Products Division's needs. What is the acceptable ange, If any, for the transfer price between the two divisions? Note: Round your answers to 1 decimal place.

Required: Assume that the Pump Division has enough Idle capacity to handle all of the Pool Products Division's needs. What is the acceptable ange, If any, for the transfer price between the two divisions? Note: Round your answers to 1 decimal place.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 16BEA

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