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Ex 22-11.. Prob 22-3B... AND ... Prob 22-5B Bob Homework The Exercise IS in your book, the problems are NOT in your textbook Required: below
Ex 22-11.. Prob 22-3B... AND ... Prob 22-5B "Bob Homework" The Exercise IS in your book, the problems are NOT in your textbook Required: below are the "working papers" for you to: complete, save to your computer, and then submit (via Canvas) to the instructor by the due date. Optional: Below your Prob B "working papers" (scroll down 3 pages) are the answers to the similar, Prob A. If needed, refer to the Prob A answers to help you complete your assignment. Exercise 22-11 E22-11 Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis. 5 $11 $35 Fixed cost per unit Variable cost per unit Selling price per unit I Instructions (a) Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (b) Assuming that the Small Motor Division does not have excess capacity, compute the min- imum acceptable price for the transfer of the small motor to the Household Division. (c) the transfer price. Explain why the level of capacity in the Small Motor Division has an effect on (a) Given excess capacity, the minimum transfer price is: (b) Given NO excess capacity the minimum transfer price is: (c) Don't forget to "answer" instruction "c
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