Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ayayai's World Toy Shop is an on-line toy store specializing in hand-made stuffed animals. Ayayai's World sold 4000 Donny the Dragon stuffed toys during April

image text in transcribedimage text in transcribed

Ayayai's World Toy Shop is an on-line toy store specializing in hand-made stuffed animals. Ayayai's World sold 4000 Donny the Dragon stuffed toys during April and 6000 during May. Shipping costs for the two months were $11400 and $16200 respectively. Using these two months' data, the shipping cost function is best estimated as ($0.50 x number of toys sold) + $9400. O ($2.40 x number of toys sold) + $1800. ($1.90 x number of toys sold) + $66400. O ($2.85 x number of toys sold) + $2760. Crane Industries produces and sells electronic sound equipment. The company has production capacity of 20200 units and currently production schedule is for 18200 units. Each unit has a selling price of $21, variable product cost of $11, and variable selling cost of $2. Another division wishes to purchase 520 units. If Crane sells the units to the other division, it will avoid $1 of the variable selling costs. What is the minimum transfer price that will maximize corporate profits? O $21 $11 O $12 O $13

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappetta

22nd edition

9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275

Students also viewed these Accounting questions