Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Little Goose Products, Inc., has a Parts Division that manufactures and sells a number of products, including a beak that could be used by another

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Little Goose Products, Inc., has a Parts Division that manufactures and sells a number of products, including a beak that could be used by another division in the company, the Stuffed Animal Division, in one of its products. Data concerning that beak appear below: 50,000 Parts Division Capacity in Units Selling Price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) $50 $30 $5 The Stuffed Animal Division is currently purchasing 10,000 of these beaks per year from an overseas supplier at a cost of $49 per beak. Assume that the Parts Division is selling all of the beaks it can produce to outside customers. If the Parts division could save $3 per unit in shipping if it sold to the Stuffed Animal Division, what should be the minimum acceptable transfer price (per unit) for the beaks from the standpoint of the Parts Division? 1 Question 9 20 pts Little Goose Products, Inc., has a Parts Division that manufactures and sells a number of products, including a beak that could be used by another division in the company, the Stuffed Animal Division, in one of its products. Data concerning that beak appear below: Parts Division 50,000 Capacity in Units Selling Price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) $50 $30 $5 The Stuffed Animal Division is currently purchasing 10,000 of these beaks per year from an overseas supplier at a cost of $49 per beak. Assume that the Parts Division is currently only able to sell 38,000 beaks a year. There is no savings in selling within the company. The minimum acceptable transfer price (per unit) from the standpoint of the Parts Division is [Select] . The maximum acceptable transfer price (per unit) for the beaks from the standpoint of the Stuffed Animal Division is [ Select) If a transfer price is set at $45, the Parts Division's net income will [Select] Stuffed Animal Division's net income will increase by b (Select ] $150,000 $50,000 $100,000 some amount other than those shown Little Goose Products, Inc., has a Parts Division that manufactures and sells a number of products, including a beak that could be used by another division in the company, the Stuffed Animal Division, in one of its products. Data concerning that beak appear below: 50,000 Parts Division Capacity in Units Selling Price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) $50 $30 $5 The Stuffed Animal Division is currently purchasing 10,000 of these beaks per year from an overseas supplier at a cost of $49 per beak. Assume that the Parts Division is currently only able to sell 38,000 beaks a year. There is no savings in selling within the company. The minimum acceptable transfer price (per unit) from the standpoint of the Parts Division is [Select ] v. The maximum acceptable transfer price (per unit) for the beaks from the standpoint of the Stuffed Animal Division is Select) If a transfer price is set at $45, the Parts Division's net income will (Select] by [Select] and the Stuffed Animal Division's net income will increase by (Select) $40,000 $150,000 $100,000 some amount other than those shown Little Goose Products, Inc., has a Parts Division that manufactures and sells a number of products, including a beak that could be used by another division in the company, the Stuffed Animal Division, in one of its products. Data concerning that beak appear below: Parts Division 50,000 $50 Capacity in Units Selling Price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) $30 $5 The Stuffed Animal Division is currently purchasing 10,000 of these beaks per year from an overseas supplier at a cost of $49 per beak. Assume that the Parts Division is currently only able to sell 38,000 beaks a year. There is no savings in selling within the company. The minimum acceptable transfer price (per unit) from the standpoint of the Parts Division is (Select] . The maximum acceptable transfer price (per unit) for the beaks from the standpoint of the Stuffed Animal Division is Select ] $49 $44 $50 the Parts Division's net income will [Select] $30 $35 and the Stuffed Animal Division's net income will increase by [Select) Question 9 20 pts Little Goose Products, Inc., has a Parts Division that manufactures and sells a number of products, including a beak that could be used by another division in the company, the Stuffed Animal Division, in one of its products. Data concerning that beak appear below: Parts Division Capacity in Units 50,000 $50 Selling Price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) $30 $5 The Stuffed Animal Division is currently purchasing 10,000 of these beaks per year from an overseas supplier at a cost of $49 per beak. Assume that the Parts Division is currently only able to sell 38,000 beaks a year. There is no savings in selling within the company. The minimum acceptable transfer price (per unit) from the standpoint of the Parts Division (Select) The maximum acceptable $30 transfer price (per unit) for the b $50 Stuffed Animal Division is $49 [Select] $35 If a transfer price is set at $45, the Parts Division's net income will [Select ] by [Select ] and the Stuffed Animal Division's net income will increase by [ Select

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Measuring Business Interruption Losses And Other Commercial Damages An Economic Approach

Authors: Patrick A. Gaughan

3rd Edition

1119647916, 9781119647911

More Books

Students also viewed these Accounting questions

Question

What does this key public know about this issue?

Answered: 1 week ago

Question

What is the nature and type of each key public?

Answered: 1 week ago

Question

What does this public need on this issue?

Answered: 1 week ago