B D In order to have time and space to produce the new ZX10 special castings, the Castings Division would have to cut back production (20%) of another casting: the RB4, which it presently produces. The details relating to the RB4 casting is given below: 12 13 Unit Selling price of one RB4 casting 4 Required unit Variable production cost 5 Unit Boxing & Shipping cost is Current production and selling (units) Expected cut (production and sales of this casting (RB4) would drop by) Required: $30.00 $12.00 $4.00 100,000 20% 1) Calculate the following in relation to the transfer of 20,000 ZX10 castings from the Castings Division to the Machine Products Division: a. Transfer price of Castings Division (5 marks) b. Transfer price of Machine Division (1 mark) c. The Range of Transfer prices, if any (2 marks) Minimum Transfer Price: Maximum Transfer Price:

10. In order to hove time and space to produce the new Zx10 spedal castings, the Castings Divislon would have to cut buck production (2006) of another 13 casting: the RBA, whlch it presently produces. The detalls relating to the RBA casting k given below: 13 C) Calculate the following in relation to the transfer of 20,000ZX10 castings from the Castings Division to the Machine Products Division: a. Transfer price of Castings Division ( 5 marks) b. Transfer price of Machine Division (1 mark) c. The Range of Transfer prices, if any (2 marks) \begin{tabular}{l} Minimum Transfer Price: \\ Maximum Transfer Price: \\ \hline \end{tabular} 10. In order to hove time and space to produce the new Zx10 spedal castings, the Castings Divislon would have to cut buck production (2006) of another 13 casting: the RBA, whlch it presently produces. The detalls relating to the RBA casting k given below: 13 C) Calculate the following in relation to the transfer of 20,000ZX10 castings from the Castings Division to the Machine Products Division: a. Transfer price of Castings Division ( 5 marks) b. Transfer price of Machine Division (1 mark) c. The Range of Transfer prices, if any (2 marks) \begin{tabular}{l} Minimum Transfer Price: \\ Maximum Transfer Price: \\ \hline \end{tabular} 10. In order to hove time and space to produce the new Zx10 spedal castings, the Castings Divislon would have to cut buck production (2006) of another 13 casting: the RBA, whlch it presently produces. The detalls relating to the RBA casting k given below: 13 C) Calculate the following in relation to the transfer of 20,000ZX10 castings from the Castings Division to the Machine Products Division: a. Transfer price of Castings Division ( 5 marks) b. Transfer price of Machine Division (1 mark) c. The Range of Transfer prices, if any (2 marks) \begin{tabular}{l} Minimum Transfer Price: \\ Maximum Transfer Price: \\ \hline \end{tabular} 10. In order to hove time and space to produce the new Zx10 spedal castings, the Castings Divislon would have to cut buck production (2006) of another 13 casting: the RBA, whlch it presently produces. The detalls relating to the RBA casting k given below: 13 C) Calculate the following in relation to the transfer of 20,000ZX10 castings from the Castings Division to the Machine Products Division: a. Transfer price of Castings Division ( 5 marks) b. Transfer price of Machine Division (1 mark) c. The Range of Transfer prices, if any (2 marks) \begin{tabular}{l} Minimum Transfer Price: \\ Maximum Transfer Price: \\ \hline \end{tabular}