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Ayayai Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp
Ayayai Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $ from an outside vendor. Division A needs lamps for the coming year. Division B has the capacity to manufacture lamps annually. Sales to outside customers are estimated at lamps for the next year. Reading lamps are sold at $ each. Variable costs are $ per lamp and include $ of variable sales costs that are not incurred if lamps are sold internally to Division A The total amount of fixed costs for Division B is $ Consider the following independent situations. a Your answer is correct. What should be the minimum transfer price accepted by Division B for the lamps and the maximum transfer price paid by Division A Minimum transfer price accepted by Division B $ per unit Maximum transfer price paid by Division A $ per unit eTextbook and Media Attempts: of used b Your answer is partially correct. Suppose Division B could use the excess capacity to produce and sell externally units of a new product at a unit selling price of $ The unit variable cost for this new product is $ What should be the minimum transfer price accepted by for the lamps and the maximum transfer price paid by Division Minimum transfer price accepted by Division B $ per unit Maximum transfer price paid by Division A per unit eTextbook and Media Last saved second ago. Attempts: of used Saved work will be autosubmitted on the due date. Auto submission can take up to minutes.
Ayayai Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps.
Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $ from an outside vendor.
Division A needs lamps for the coming year.
Division B has the capacity to manufacture lamps annually. Sales to outside customers are estimated at lamps for the
next year. Reading lamps are sold at $ each. Variable costs are $ per lamp and include $ of variable sales costs that are not
incurred if lamps are sold internally to Division A The total amount of fixed costs for Division B is $
Consider the following independent situations.
a
Your answer is correct.
What should be the minimum transfer price accepted by Division B for the lamps and the maximum transfer price paid by
Division A
Minimum transfer price accepted by Division B $ per unit
Maximum transfer price paid by Division A $ per unit
eTextbook and Media
Attempts: of used
b
Your answer is partially correct.
Suppose Division B could use the excess capacity to produce and sell externally units of a new product at a unit selling
price of $ The unit variable cost for this new product is $ What should be the minimum transfer price accepted by
for the lamps and the maximum transfer price paid by Division
Minimum transfer price accepted by Division B $ per unit
Maximum transfer price paid by Division A per unit
eTextbook and Media
Last saved second ago.
Attempts: of used
Saved work will be autosubmitted on the due date. Auto
submission can take up to minutes.
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