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 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 Requirements 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 pertain to outside sales only. 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer More info 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 12%, 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 $3.00 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 total manufacturing variable cost plus 26%, what transfer price would be used? Assume that the company does not consider fixed manufacturing overhead in setting its intemal transfer price in this scenario. (Round your answer to the nearest cent.) Because of competition, the market price for this video card is $35 regardless of whether the video card is produced by Martin Manufacturing or another company. whether the video card is produced by Martin Manufacturing or another company. . Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 110% 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 $3.00 per unit as a result of the increased production resulting from the intemal transfers. (Round your answer to the nearest cent.) 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 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 Requirements 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 pertain to outside sales only. 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer More info 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 12%, 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 $3.00 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 total manufacturing variable cost plus 26%, what transfer price would be used? Assume that the company does not consider fixed manufacturing overhead in setting its intemal transfer price in this scenario. (Round your answer to the nearest cent.) Because of competition, the market price for this video card is $35 regardless of whether the video card is produced by Martin Manufacturing or another company. whether the video card is produced by Martin Manufacturing or another company. . Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 110% 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 $3.00 per unit as a result of the increased production resulting from the intemal transfers. (Round your answer to the nearest cent.)
