assume the small components division of Martin manufacturing produces a video card used in the assembly of a variety of electronic products.

Assume the Smal Components Division of Martin Manufncturing produces a video card used in the assembly of a varioty of oloctronio products. (Ciok the icon to view additional informntion.) Rend the requiremonts. Requlrement 1. What is the highest acooptable transler price for the divisions? The highest accoptable transter price for the divisions is the Smull Compononts Diviaion's Requirement 2. Assuming the transfor price is negotated between tha divisions of the company, what would be the lowest accoptable fransfor price? Assume variable selling axpenses pertain to outside sales only. The lowest accoptable transfer price for the divisions is the Smal Components Divion's Requirement 3. Which transter prioe would the manager of the Smal Components Divison prefer? Which trantloc price would the manager of the Computer Division prefer? The manager of the Small Components Dtrsion woive prefer a transter price of The manager of the Computar Division would prefer a titinster price of Requirement 4. If the company's policy requres that ak in-bouse trantfecs must be priced at full abcocption cost plus B\%, what transfer price would be useor Aasume that the inereased productior leval noedod to fili the transfer would resul in foced mancfactiring overhead decreasing by 52.00 per unt (Round your ansmer to the nearoat cent) (Variable Cost + Fixed MOH Cost) Cotiplus trinnter poce The iransifer price that would be used in Requlrement 3. Which transior proce would the manager of the Small Components Division profer? Which transler price mould the manager of the Computer Division prefor? The manager of the Small Coenponents Division would prefer a transfor price of The manager of the Compuler Division would preber a transter price of Requirement 4. If the compeny's policy requires that all inthouse translors munt be pricod at full absorpeion cost plus B\%, what terensior price would be used? Asume that the increased production level noeded to fill the transfer would rotult in fixed manufachsing overhead decreasing by $200 per unit, (Round your answer to the neasest cent.) Begin by selecting the formula to compute the transfer price under this strategy (Abbreviabion used MOH = Marufacturng overtead.) Cost gins transfer price The transter price that would be used is Requirement 5. If the companys policy requies that all in house transfees must be priced at lotal manidacturing variable cont plus 22%, what transter prioe would be used? Assumn that the Begin by seiecting the formula lo compute the Iranafer price under this stralegy. (Nobeviaton used MOH = Marafacturng overtead) Trameter price The transter price that would be used is Requirement 6. Asume now that the compony does incur the variable soting expenses on internat transfers. If the company poilcy is to set transter prices at 110% ef the sum of the fir abtorpoon cost and ele variable seing experses, what transter peice would be set? Assume that the fres manulacturing overhead would drop by 52 . 00 per unit as a resait of the increared production mewitirg cost and ere varivole seing expendemal transfers. (Roond your answer to the nearest cent) Begin by selecting the formula to compute the transter price under this strategy (Abhreviatien used: Mori = Manutacturng overtiead) Trander grice The transler peles that wouid be used a More info The division's manufacturing costs and variable selling expenses related to the video card are as follows: 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 $34 regardless of whether the video card is produced by Martin Manufacturing or another company. 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 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 total 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 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 $2.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent.)