Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blackboard XCO Remaining Time: 1 hour, 58 minutes, 49 seconds. Question Completion Status: Question 11 8 points Save Answer The Post Division of Awal Company
Blackboard XCO Remaining Time: 1 hour, 58 minutes, 49 seconds. Question Completion Status: Question 11 8 points Save Answer The Post Division of Awal Company produces basic posts, which can be sold to outside customers or sold to the Lamp Division of Awal Company. The following data are available for last year's activities of the Post Division: The Post Division Capacity in units Selling price per post to outside customers. Variable costs per post.. Fixed costs, total 300,000 posts $1.75 $0.90 $150,000 25,000 posts The Lamp Division Number of Units needed Purchase Price from Outside Suppliers $1.5 Required: 1. Suppose that the Post Division sells to outside customers 270,000 units. What is the lowest transfer price that would not reduce the profits of the Post Division? And what is the range of transfer 2. Suppose that the Post Division sells to outside customers 300,000 units and the cost of packing and shipping the posts for outside customers is $0.1 per unit, these packing and shipping costs would not have to be incurred on sales of the posts to Lamp Division. What is the lowest transfer price that would not reduce the profits of the Post Division? And what is the range of transfer? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I Paragraph 14px T % Arial IT SI T. x x - 199 22 + lil FH ()
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started