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Business, 02.12.2019 23:20 lbelle

Henderson company manufactures electronics. the calculator division (an investment center) manufactures handheld calculators. the division can purchase the batteries used in the calculators from the battery division (another investment center) or from an outside vendor. the cost to purchase batteries from the outside vendor is $5. the transfer price to purchase from the battery division is s6. the battery division also sels to outside customers. the sales price $6·and the variable cost $3. the battery division has excess capacity. should the calculator division purchase from the battery division or the outside vendor? (a) the calculator division should purchase from the outside vendor as long as the transfer price is $5.00 or less because the banery divison has excess capacity(b) the calculator division should purchase from the battery division as long as the transfer price is $5.00 or less because the battery division has excess capacity (c) the calculator division should purchase from the battery division as long as the transfer price is s6.00 or less becase the battery dison has exess capacity(d) the calculator division should purchase from the outside vendor as long as the transfer price is $3.00 or more becase the aney been speng at capacity.

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