Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Monty Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Monty then assembles and

Monty Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Monty 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. Unit fixed cost Unit variable cost Unit selling price (a) $4 12 33 Your answer is correct. 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, (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price $ 12 per unit
image text in transcribed
image text in transcribed
Monty Compary/s Small Motor Division manufactures a number of small motors used in household and office appliances. The any of their components internally or externally. The following costs relate to smali motor LN233 on a per unit basis \begin{tabular}{lr} Unit fired cost & 54 \\ Unit variable cost & 12 \\ Unit veltine price & 33 \end{tabular} (a) Your anwer is correct Aswminc that the Senal Motor Division has eacess capacity compute the minimum acceptable price for the tranafer of small Minimum tranterprice i perunit Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Houschold Division. (Round answer to 2 decimal places, eg. 10.50) Minimum transfer price

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

Auditing In The Food Industry From Safety And Quality To Environmental And Other Audits

Authors: M Dillon, C Griffith

1st Edition

1855734508, 978-1855734500

More Books

Students also viewed these Accounting questions