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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
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
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