Transfer pricing aulman inc. has a number of divisions including a furniture division and a motel division. the motel division owns and operates a line of budget motels located along major highways. each year, the motel division purchases furniture for the motel rooms. currently, it purchases a basic dresser from an outside supplier for $60. the manager of the furniture division has approached the manager of the motel division about selling dressers to the motel division. the full product cost of a dresser is $29. while the furniture division has been operating at capacity (50,000 dressers per year) and selling them for $60 each, it expects to produce and sell only 40,000 dressers for $60 each next year. the furniture division incurs variable costs of $15 per dresser. the motel division needs 10,000 dressers per year; the furniture division can make up to 50,000 dressers per year. the company policy is that all transfer prices are negotiated by the divisions involved. required: 1. what is the maximum transfer price? $ which division sets it? 2. what is the minimum transfer price? $ which division sets it? 3. suppose that the two divisions agree on a transfer price of $31. what is the benefit for the furniture division? for the motel division? for aulman inc. as a whole? benefit to furniture division $ benefit to motel division $ benefit to company $ check my work3 more check my work uses remaining. previous