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K Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click
K Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements The highest acceptable transfer price for the divisions is the Small Components Division's market price $ 26 Requirement 2. Assuming the transfer price is negotiated between the divisions of the company, what would be the lowest acceptable transfer price? Assume variable selling expenses pertain to outside sales only The lowest acceptable transfer price for the divisions is the Small Components Division's variable costs $27 Requirement 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? The manager of the Small Components Division would prefer a transfer price of The manager of the Computer Division would prefer a transfer price of $ 26 $27 Requirement 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 14%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overhead decreasing by $1.00 per unit. (Round your answer to the nearest cent.) Begin by selecting the formula to compute the transfer price under this strategy (Abbreviation used: MOH- Manufacturing overhead.). Cost-plus transfer price O Get more help - Clear all Final check
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