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Assume the Small Components Division of Swish Manufacturing produces a video card used in the assembly The Computer Division of Swisher Manufacturing can use the
Assume the Small Components Division of Swish Manufacturing produces a video card used in the assembly The Computer Division of Swisher Manufacturing can use the video card produced by the Small Components er of a variety of electronic praducts. The division's manufacturing costs and variable selling expenses related to vision and is interested in purchasing the video card in-house rather than buying it from an outside supplier. he video card are as follows 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 $26 regardless of whether the video card is (Click the icon to view the division's manufacturing costs and variable selling expenses. produced by Swisher Manufacturing or another company. Read the requirements. 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 Requirement 2. Assuming the transfer price is negotiated between the division of the company, what would be the lowest acceptable transfer price? s The lowest acceptable transfer price for the divisions is the Small Components Division's 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 s The manager of the Computer Division would prefer a transfer price of Requirement 4. If the company's policy requires that all in-house transfers be priced at full absorption cost plus g%, 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) Begin by selecting the formula to compute the transfer price under this strategy. (Abbreviation used: MOH J Manufacturing overhead.) Cost-plus transfer price The transfer price that would be used is L
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