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Need profit margin on materials in percentage on above question ^ Need both: minimum transfer by B and maximum by A for second above question
Need profit margin on materials in percentage on above question ^
Need both: minimum transfer by B and maximum by A for second above question ^
Thanks so much for your help in advance!
Cheyenne's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows. Time Charges Material Loading Charges Restorers' wages and fringe benefits $253,440 Purchasing agent's salary and fringe benefits $59,400 Administrative salaries and fringe benefits 52,800 18.216 Other overhead costs 21,120 77,616 Total budgeted costs $327,360 $155,232 The company anticipated that the restorers would work a total of 10,560 hours this year. Expected parts and materials were $1,108,800. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $70.00 and that the material loading charge was 83.00%. (b) Determine the profit margin on materials. (Round intermediate calculations and final answer to 2 decimal places, eg. 10.25%.) Profit margin on materials % e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Blue Spruce Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $10 from an outside vendor. Division A needs 12,600 lamps for the coming year. Division B has the capacity to manufacture 63,000 lamps annually. Sales to outside customers are estimated at 50,400 lamps for the next year. Reading lamps are sold at $12 each. Variable costs are $7 per lamp and include $1 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $100,800. Consider the following independent situations. (b) Suppose Division B could use the excess capacity to produce and sell externally 18,900 units of a new product at a unit selling price of $7. The unit variable cost for this new product is $5. What should be the minimum transfer price accepted by Division B for the 12,600 lamps and the maximum transfer price paid by Division A? Minimum transfer price accepted by Division B $ per unit Maximum transfer price paid by Division A $ 10 per unitStep by Step Solution
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