Grover Corp. is a manufacturing company that produces golf clubs. Birdie is a division of Grover tha

Grover Corp. is a manufacturing company that produces golf clubs. Birdie is a division of Grover tha

Grover Corp. is a manufacturing company that produces golf clubs. Birdie is a division of Grover that manufactures putters. Birdie’s putters are used in Grover’s golf club sets and are sold to other golf wholesalers. Cost information per putter follows:  
Variable cost $25.00 Full cost 28.00 Market price 42.00

In addition, its capacity data follow:
Capacity per year 40,000 putters Current production level 30,000 putters

Required:
1. Assuming Grover produces 3,000 putters per year, determine the overall benefit of using putters from Birdie instead of purchasing them externally. Total Savings

2. Determine the maximum price that the production facility would be willing to pay to purchase the putters from Birdie. Maximum price

3. Determine the minimum that Birdie will accept as a transfer price. Minimum price

4. Determine the mutually beneficial transfer price for the putters. (Round your answer to 2 decimal places.) Mutually Beneficial Price   

5. If Birdie were operating at capacity, What would the minimum price it accept? Minimum price   

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