Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ACCT 202A Fall 2022 Chapter 9 assignment, to be handed in. Transfer pricins : 16 points: iCorporation has two devion, an electic diwison and an

image text in transcribed
image text in transcribed
ACCT 202A Fall 2022 Chapter 9 assignment, to be handed in. Transfer pricins : 16 points: iCorporation has two devion, an electic diwison and an appliance divion. One of the Flectric Drwisocs products is an ciectric motor. The varuble cost ta produse the electrie mots is 5180 . The Flectric Divison seils the electric mosor eaternally for 5310each. The Abelance Divien is planning to produce a new product that weuld one in rlectric matoc, and wants to bur 1.000 slinctuic motari trom the Electric Divilion. AEquakto: 1. The Electric Division has the excess capacity to make the 1.000 units. What is the mithim mom tranaler price the Electric division would be willing to accept? What is the maimum transter price the Appliance Oivilor would be wiline to pay? 2. The tlectric Drision is new selline all its electric motors at $310 each, and has ne eacess capacityWhat is the minimum tranafer price the flectric Divilion would be willing to aceept? What is the maximum transfer price the Appliance Division would be willing to pay? Ambrose Corporation has two division: an electric division and an appliance division. One of the Electric Division's products is an electric motor. The variable cost to produce the electric motor is $180. The Electric Division sells the electric motor externally for $310 each. The Appliance Division is planning to produce a new product that would use an electric motor, and wants to buy 1,000 electric motors from the Electric Division. REQUIRED: 1. The Electric Division has the excess capacity to make the 1,000 units. What is the minimum transfer price the Electric division would be willing to accept? What is the maximum transfer price the Appliance Division would be willing to pay? 2. The Electric Division is now selling all its electric motors at $310 each, and has no excess capacity. What is the minimum transfer price the Electric Division would be willing to accept? What is the maximum transfer price the Appliance Division would be willing to pay

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Accounting And Finance For Non Specialists

Authors: Eddie McLaney

9th Edition

1292062711, 9781292062716

More Books

Students also viewed these Accounting questions

Question

=+Differentiate the key characteristics of a personal brand

Answered: 1 week ago

Question

1. What are the benefi ts of studying communication?

Answered: 1 week ago

Question

=+Discuss the key benefits and challenges of a personal brand

Answered: 1 week ago