1.

2.

A company purchases a 7.260-square-foot commercial building for $350,000 and spends an additional $68,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 1,485 square feet, will be rented for $2.00 per square foot. Unit 8 contains 5.775 square feet and will be rented for $1.20 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation? Apportioned Percent of Market Value Joint Cost Market Value Numerator | Denominator | % of Mkt Value Unit A Unit B Totals 0 00% The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $106 each. Each trailer incurs $35 of variable manufacturing costs. The trailer division has capacity for 27,000 trailers per year and incurs fixed costs of $510,000 per year Required: 1. Assume the assembly division of Baxter Bicycles wants to buy 4,400 trailers per year from the trailer division. If the trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles's divisions? 2. Assume the trailer division currently only sells 9,800 trailers to outside customers, and the assembly division wants to buy 4,400 trailers per year from the trailer division. What is the range of acceptable prices that could be used on transfers between Baxter Bicycles's divisions? 1. Transfer price per trailer 2. Transfer price per trailer will be at least but not more than