Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

73.3 in Crede Inc. has two divisions. Division makes and tells student desks Division B manufactures and sells residing langs Each desk has a reading

image text in transcribed
image text in transcribed
image text in transcribed
73.3 in Crede Inc. has two divisions. Division makes and tells student desks Division B manufactures and sells residing langs Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of 11 from an outside vendor Division A needs 9.400 ms for the coming year Division Blus the capacity to manufacture 53.200 amps Sales to outside customers are estimated at 43.600 tamps for the next year. Reading lamps are sold at 511 each Variable costs are 57 perlamp and include 51 of varble sales costs that are not incurred if lamps are sold internally to Division A The total amount of freed costs for Division in $7 600 Consider the following independent situations. a) What should be the minimum transfer price accepted by Division B for the 9.600 lamps and the maximum transfer price pod by Division A $ perunt Minimum tranfer price accepted by Division Maximum transfer price paid by Division A $ perunit e Textbook and Media 19 3 28 is % 5 & 7 1 9 0 8 6 NO 4 3 0 - Y R T E Q W G HJK F A S D N M B > Z C - * Command an command (b) Suppose Division B could use the excess capacity to produce and sell derail 12.300 sterodactat a price of 58 per unit. The variable cost for this new product is $5 per unit. What should be the minimum transfer prices by Division Bfor the 9.600 lamos and the maximum transfer price paid by Division A? $ perunt Minimum transfer price accepted by Division Maximum transfer price paid by Division 5 Derunt eTextbook and Media Attempt of 3 used SA Save Using multiple attempts will impact your score 10% score reduction after attempt 2 Ic Il Division Aneeds 15,360 lamos instead of 9.600 during the year, what should be the minimum transfer price acested by Division and the maximum transfer price paid by Division A Hound answers to 2 decimal places 10.50 1 70 0 % 5 AO 8 7 9 8 6 2 3 O p T U Y R 2 W E H F 4 S D M BN C V X Z cond command c) if Division A needs 15,360 lamps instead of 9,600 during the next year, what should be the minimum transfer price accepted by Division B and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, es 10.50) $ Minimum transfer price accepted by Division B Maximum transfer price paid by Division A per unit per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practicing Statistics Guided Investigations For The Second Course

Authors: Shonda Kuiper, Jeff Sklar

1st Edition

9780321586018

Students also viewed these Accounting questions