Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the fogui remens Requirement 1. What is the highest acceptable transfer price for the divisions? The highest acceptable transfer price for the divisions is the Small Components Division's market price S 35 Requirement 2. Assuming the transfer price is negotiated between the divisions of the company, what would be the lowest acceptable transfer price? Assume varlable selling expenses pertain to outside sales only. The lowest acceptable transfer price for the divisions is the Small Components Division's variable costs $ 21 Requirement 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? The manager of the Small Components Division would prefer a transfer price of The manager of the Computer Division would prefer a transfer price of $ 38 $ 21 Requirement 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus B'%, 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 S2.00 per unit. (Round your answer to the nearest cant.) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH = Manufacturing overhead.) (Variable Cost + Fixed MOH Cost) x 1.08 Cost-plus transfer price The transfer price that would be used is Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements - More info Requirement 1. What is the highest acceptable transfer price for the di The highest acceptable transfer price for the divisions is the Small Con market price $ 38 The division's manufacturing costs and variable selling expenses related to the video card are as follows: Requirement 2. Assuming the transfer price is negotiated between the expenses pertain to outside sales only. Cost per unit $ 13.00 $ 5.00 The lowest acceptable transfer price for the divisions is the Small Com variable costs $ 21 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (at current production level) Variable selling expenses $ 3.00 Requirement 3. Which transfer price would the manager of the Small $ 7.00 $ 10.00 The manager of the Small Components Division would prefer a transfo The manager of the Computer Division would prefer a transfer price of 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 $38 regardless of whether the video card is produced by Martin Manufacturing or another company. Requirement 4. If the company's policy requires that all in-house trans fixed manufacturing overhead decreasing by S2.00 per unit. (Round yo Begin by selecting the formula to compute the transfer price under this (Variable Cost + Fixed MOH Cost) x 1.08 increased production level needed to fill the transfer would result in The transfer price that would be used is Print Done 1 Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements X Requirements Requirement 1. What is the highest acceptable transfer price The highest acceptable transfer price for the divisions is the market price S S Requirement 2. Assuming the transfer price is negotiated be pertain to outside sales only The lowest acceptable transfer price for the divisions is the S variable costs S S 1. What is the highest acceptable transfer price for the divisions? 2. Assuming the transfer price is negotiated between the divisions of the company, what would be the lowest acceptable transfer price? Assume variable selling expenses perlain to outside sales only 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? 4. If the company's policy requires that all in-house transfers must be priced at full absorption 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 nearest cent.) 5. If the company's policy requires that all in-house transfers must be priced at tolal manufacturing variable cost plus 22%, what transfer price would be used? Assume that the company does not consider fixed manufacturing overhead in setting its internal transfer price in this scenario. (Round your answer to the nearest cent.) 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 103% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $2.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cont.) Requirement 3. Which transfer price would the manager of th The manager of the Small Components Division would prefer The manager of the Computer Division would prefer a transfe d production level needed to fill the transfer would result in Requirement 4. If the company's policy requires that all in-ho fixed manufacturing overhead decreasing by S2.00 per unit.( Begin by selecting the formula to compute the transfer price u (Variable Cost + Fixed MOH Cost) x 1.08 The transfer price that would be used is O Print Done