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Flash E- Card Manufacturing manufactures software parts for the computer software systems that produce e-cards. The Flash ll part is needed in the Computer Department
Flash E- Card Manufacturing manufactures software parts for the computer software systems that produce e-cards. The Flash ll part is needed in the Computer Department The Data Department produces the part and the plant has excess capacity to produce the Flash II part. The ourrent market price of the Flash II part is $1,700. The managerial accountant reported the following manufacturing costs and variable expense data: Flash E-Card Manufacturing Manufacturing Costs and Variable Expense Report Flash ll Component Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (current production level) Variable selling expenses (only incurred on sales to outside consumers) $810 $160 $140 $185 $136 If the highest acceptable transfer price is $1,700 in the market, what is the lowest acceptable in- house price the Data Department should receive to produce the part in-house at the Computer Department? OA. $160 OB. $810 C, O D. $1,110 $140 The performance evaluation of a profit center is typically based on its 0 A" return on investment O B. segment margin. C. static budget variance O D. return on assets. Silvio Enterprises produces three products,with costs and selling prices as follows PeT 2 00 margin Each product requires a certain number of minutes on the drill press. There is only one drill press available so it is the constraint for this product. Model D7 requires 2 minutes of dril press time, Model 83 requires 1 minute of drill press time, and Model F5 requires 7 minutes of drill press time. Iin what order should Silvio Enterprises emphasize its products to maximize its contribution margin? (Rank the products in order from most profitable to least profitable.) 0 A OB. C. O D. Model B3, Model F5, Model D7 Model D7, Model 83, Model FS Model 83, Model D7, Model FS Model F5, Model D7, Model B3
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