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Assume the Small Componenta Division of Martin Manufacturing produces a video card used in the assembly of a variety of electranic products. (Click the icon
Assume the Small Componenta Division of Martin Manufacturing produces a video card used in the assembly of a variety of electranic products. (Click the icon to view additional information.) Read the recuirements. Requirement 1. What is the highest acosplable transfer price for the divisions? Requirements The highest acceptable transfer price for the divisions is the Small Components Division's More Info 1. What is the highest acceptable transter price for the divisicns? 2. Assurring the transfer price is negotiated between the divisionns of the copany, what would be the lowest acceptable transfer price? Assurie variable selling expenses pertair to oulside sales 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer The division's manufacturing costs and variable selling expenses related to the video card are as follows price would the manager of the Cptr Diviaion prefer? 4. If the company's policy requires that all in-house transters must be priced at full absoption cost plus 8%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overhead decreasing by $2.00 per unit Round your answer to the neerest cent) Cost per unit 14.00 10.00 9.00 Direct materials Direct labor 5. If the cormpany's policy eqires that all in-house transfers must be priced at tolal rrianufacturing variable cost plus 28%, what transfer price would be used? Assume that the company does not consider fixed manufacturing overhead in seting its inel transfer price in this scenario. Round your answer to the noarost cent) Fixed manufacturing overhead 6. Assume now that the company d oes incur the variable selling expenses on i ntemal transfers. If at current production level) $12.00 $ 9.00 the company policy i to set transfer prices at 108% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Asaume that the fixed manufacturing overhead woud drop by $2.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answerto The Computer Division of Martin Manufacturing can use the video card produced by the Small Components Division and is interested in purchasing the video card in-house rather than buying it from an outside supplier. The Small Components Division has sufficient excess capacity with which to make the extra video cards. Because of competition, the market price for this video card is S35 regardless of whether the video card is produced by Martin Manufacturing or another company. PrintDone Choose from any list or enter any number in the inp
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