The Ukulele Company's radio division currently is purchasing transistors from the Xiang Co for $3.50 each. The total number of transistors needed is 8,000 per month. Ukulele Company's electronics division can produce the transistors for a cost of $4.00 each and they have plenty of capacity to manufacture the units. The $4 is made up of $3 in variable costs, and $1 in allocated fixed costs. What

should be the range of a possible transfer price?
A) No transfer should take place.
B) $3.51 to $3.99
C) $3.01 to $3.99
D) $3.01 to $3.49


D

Business

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If the seller breaches a sales contract, the buyer may

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