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$[$The following informotion opplies to the questions clisployed below.$]$

Clearview Window Company monufactures windows for the home$-$building industry. The window frames are produced in

the Frome Division. The frames are then transferred to the Glass Division, where the glass and hardwore ore installed. The

compony's best$-$selling product is a three$-$by$-$four$-$foot, double$-$poned operable window.

The Frame Division also can sell fromes directly to custom home builders, who install the glass and hardwore. The sales

price for o frome is $$190.$ The Glass Division sells its finished windows for $$430.$ The markets for both fromes ond finished

windows exhibit perfect competition.

The standerd variable cost of the window is detailed as follows:

$*$Not including the transfer price for the frome.

$2-$a$.$ Assume that there is excess copocity in the Frome Division. Use the generol rule to compute the transfer price for window fromes.

$2-$c$.$ Suppose the predetermined fixed$-$overhesd rate in the Frome Division is $120$ percent of direct$-$labor cost. Calculate the tronsfer

price if it is bosed on standord full cost plus o $10$ percent morkup.

$2-$d$.$ The Gloss Division has been approsched by the U$.$S$.$ Army with a special order for $1,500$ windows at $$380.$ Assume the tronsfer

price established in requirement $2*c.$ above is being used.

i$.$ What is the incremental contribution $($loss$)$ per window for Cleorview Window Company ss o whole if this special order is accepted?

ii$.$ From the perspective of Cleorview Window Company ss o whole, should the special order be accepted or rejected?

$2.$e$.$ The Gloss Division hos been opprosched by the U$.$S$.$ Army with o special order for $1,500$ windows at $$380.$ Assume the transfer

price established in requirement $2*c.$ above is being used.

i$.$ What is the incremental contribution $($loss$)$ per window for the Glass Division if this special order is accepted?

ii$.$ Will an sutonomous Glass Division mansger accept or reject the specisl order?

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Suppose the predetermined fixed$-$overhead rate in the Frame Division is $120$ percent of direct$-$labor cost. Calculate the

transfer price if it is based on standard full cost plus a $10$ percent markup.