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B06025602 product is transferred Internal between two divisions packaging and advertising cost will be incurred for Division 1. Division 2 can buy its required mi

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B06025602 product is transferred Internal between two divisions packaging and advertising cost will be incurred for Division 1. Division 2 can buy its required mi from an outside supplier for 50 80 per litre The operational variable overhead cost is allocated to products based on 120% of direct labour cost per tre in each division. Data regarding both Divisions for the Last month is presented as follows: 42 Determine the minimum transfer price per 1.000 litres of milk that Division 1 would accept for an order of up to 80.000.000 tres of milk from Division 2 (based on current demand and current capacity) Maximum marka: 3 Division 2 Division 1 300,000 $1,000 60 $25 $500.00 120,000 $2.000 30 $30 $250.00 43 Determine the maximum transfer price per 1,000 litres of that Division 2 would pay for any order size of up to 85,000,000 litres of milk from Division 1 Maximum marka Capacity per month (1,000 ltres) Marketing price per 1,000 litres DLH bonded per 1.000 tres (minut) DLH rate per hour Direct material coal milk for Processing and flavours for Dairy divisions) per 1,000 litres Transfer in cont per 1.000 wres Padaging cost per tre Variable overhead cost per 1.000 litres Advertising cost per month Find manufacturing costs for the month for the division (5) Total extemal demand per month for the divisions (1.000 litres) 2 $0.00 $0.20 7 $15,000 $150,000 $0.30 ? $18,000 $160.000 44 Determine what transfer price per 1,000 litres of milk would be the best for the NZ Dairy Industry as a whole) based on current demand and current capacity Divan 1 wants to receive an order of size of up to 90,000,000 litres of milk from Division 2? 210,000 120.000 Maximum mark Required Determine the minimum transfer price per 1,000 Mtres of mik that Division 1 would accept for an order of up to 10,000,000 litres of milk from Division 2 based on current demand and coach 45 What transfer price per 1,000 litres of mik would you recommend Division 1 radno spare capacity?

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