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18 The Parts Division of Harrisburg Company produces motors for sale to external customers. Monthly data are shown below: Capacity Sales Price 5,000 units 4,750

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18 The Parts Division of Harrisburg Company produces motors for sale to external customers. Monthly data are shown below: Capacity Sales Price 5,000 units 4,750 units 110.00 per unit 35.70 per unit 2.10 per unit (to external customers only) 2$ Variable production cost Variable selling cost The Consumer Division of Harrisburg would like to begin using the motors produced by the Parts Division in its highest selling product. If the Consumer Division requires 500 motors per month, what is lowest transfer price the Parts Division should accept to supply all the motors the Consumer Division needs? A. $73.90 B. $107.90 C. $71.80 D. $72.85 E. None of the above 2019 Fall Final 17 Salem Chemical Corporation manufactures three chemicals (Kappa, Jota, and Omicron) from a joint process. The three chemicals are in industrial grade form at the split-off point. They can either be sold at that poat of processed further into premium grade. Costs related to cach batch of this chemical process is as follows. Kappa $16,000 lota Omicron Sales value at split-off point Allocated joint costs $12,000 $5,000 $6,000 $6,000 $6,000 $20,000 $3,000 Sales value after further processing Cost of further processing $18,000 $3,000 $9,000 $5,000 For which product(s) above would it be more profitable for Salem to sell after further processing rather than at the split-off point? A. Kappa only B. Iota only C. Omicron only D. All of them E. Kappa and Iota

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