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Calculate the minimum transfer price that Heidelberg Division, should belling to accept for each system display transferred to ISD for product X73. Assume that ECD
Calculate the minimum transfer price that Heidelberg Division, should belling to accept for each system display transferred to ISD for product X73. Assume that ECD is paid its usual transfer price for subassemblies. Show and label of of your calculations:
1. ISD's tentative target price for the X73 system was E340,000.1 2. Heidelberg's standard manufacturing cost (mate- rial, labor, and overhead) for each display system was $105,000. When asked, Mr. Halperin estimated that the variable portion of this total cost was only 650,000. He treated Heidelberg's labor costs as fixed because German laws did not allow him to lay off employees without incurring expenses that were "prohibitively" highStep by Step Solution
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