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oivish purcheses fumiture for the motel rooms. Curteely, it purchases a basic dresser from an outside supgher for s40. The mansger of the furheure Division

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oivish purcheses fumiture for the motel rooms. Curteely, it purchases a basic dresser from an outside supgher for s40. The mansger of the furheure Division has approached the manager ef the Motel 10,000 drewens per year; the fueniture Divis can make up to 50,000 dressera per vean , Nho, assume that the company poilic is that ail transfer prices are negotiated by the divions inrolved. Required: 1. What is the mmimum transter price? x Which division sets ict 2. What is the minimum tanster price? x Which divise wets it? 3. Cincuptuai Connectioni if the tranquer takn place, what wat be the transfer ence? x Does a matter whistier or not the tranger taies plack? Aumen the, has a number of divisions including a Fueniture bisision and a Mote bvision. The Moter bivision owns and openates a ane of budget moteis iocated along major Righwayz. Fach year, the Motel Divion purchases furnture foc the motel rooms. Currenthy, it purchases a bavic dresser from an outside supplier for 540 . The manager of the furniture Oivision hus apprasched the manager of the Motel Oivison zbout seaing artsters to the Motel Divion. The Aa product cost of a dresser is 32 . While the Fumature Oivaien has been operatiog at capecity (50,000 dressers per vear) and selling them for 540 each, it expects to produce and seil aniv 40,000 dressers for s40 each nent year. The furniture Divinen incirs varable costs of $13 ger dresuer Heculred 1. What is the maximum tranter price? Which devison sets it? 2. What is the minimum transfer price? Which avision sets nt Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: At the beginning of last year, Elway had $38,668,000 in operating assets. At the end of the year, Elway had $41,346,000 in operating assets. Required: 1. Compute average operating assets, x 2. Compute the margin (as a percent) and turnover ratios for last yeac. If required, round your answers to two decimal places. \begin{tabular}{ll} Margin & % \\ \hline Turnover & \end{tabular} 3. Compute ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places. %

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