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Atascadero Industries operates a Manufacturing DIvision and a Marketing Division. Both dMsions are evaluated as proft centers. Marketing buys products from Manufactuing and packages them
Atascadero Industries operates a Manufacturing DIvision and a Marketing Division. Both dMsions are evaluated as proft centers. Marketing buys products from Manufactuing and packages them for sale. Manufaczuring sells many components to third partiles in addtion to Marketing. Selected data rom the wa operations follow Capacity (urits alcs price Veriable costsb Fhrad costs 080,000 508,000 1,800 4950 610 1840 $10,800,000 7280 000 For Manutacturing, this is the price to third parties For Marketing, this does nat incluce the transfer price paid to Manufacturing Suppose Manufactuning is locaned in Country X wh a tax r Required atc ot 70 percent and Marketing in Country with a tax rate of 30 percent. All other facts remain the same. production levelts in Manufacturing are 580,000 unts a. Current Marketing requests an additional 180,000 units to prcduce a special order. What transter price would you recommend per urit b. Suppose Manufacturing is operating at full capacity What transfer price wcukd yau recommena? per unit c. Suppose Mctuingsoperating at 928,000 units. Wha: transfer price would you recommend? per unit
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