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he Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers, have a narket price

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he Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers, have a narket price of $103 each. Each traller incurs $36 of variable manufacturing costs. The Trailer division has capacity for 20,000 trailers ber year and has fixed costs of $520,000 per year. 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,200 trallers per year from the Trailer division. If the Traller division can sell all of the trailers it manufactures to outside customers (and has no excess capacity), what price should be used on transfers between divisions? 2. Assume the Traller division currently only sells 10,700 trailers to outside customers and has excess capacity. The Assembly division wants to buy 5,200 trailers per year from the Trailer division. What is the range of acceptable prices on transfers between divisions? Home Properties is developing a subdivision that includes 380 home lots. The 190 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 190 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $41,000 and for each Hilltop lot is $108,000. The developer acquired the land for $1,700,000 and spent another $2,700,000 on street and utilities improvements. Assign the joint land and improvement costs of $4,400,000 to the Canyon section and the Hilltop section using the value basis of allocation. (Do not round your intermediate calculations.) A dairy company processed raw milk for $64,500. This raw milk can be converted into the following types of milk with listed sales values. Use the sales value basis to (1) allocate the total cost of the raw milk to each type of milk and (2) determine the gross profit for each type of milk

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