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only do parts a and b Lamothe Solutions is a management consulting firm. Its Business Division advises firms on the adoption and use of financial
only do parts a and b
Lamothe Solutions is a management consulting firm. Its Business Division advises firms on the adoption and use of financial systems. Civic Division consults with state and local governments. Clvic Division has a client that Is Interested In Implementing a new costing system in its public works department. The division's head approached the head of Business Division about using one of its assoclates. Corporate Division charges clients $825 per hour for assoclate services, the same rate other consulting companies charge The Civic Division head complained that it could hire its own assoclate at an estimated varlable cost of $425 per hour, which is what Business pays its assoclates. Required: a. What is the maximum price that Civic Division should pay? b. What is the maximum transfer price tht Business Division should obtain for its services, assuming that it is operating at capacity? c-1. Is there any change in maximum price as Indicated in part (a), If Business Division had Idle capacity? c-2. Is there any change in maximum transfer price as Indicated in part (b), If Business Division had Idle capacity? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is the maximum price that Civic Division should pay? Lamothe Solutions is a management consulting firm. Its Business DivIsion advises firms on the adoption and use of financial systems. Civic Division consults with state and local governments. Civic Division has a client that is interested in Implementing a new costing system in its public works department. The division's head approached the head of Business Division about using one of its assoclates. Corporate Division charges clients $825 per hour for assoclate services, the same rate other consulting companles charge. The Civic Division head complained that it could hire its own associate at an estimated varlable cost of $425 per hour, which is what Business pays its assoclates. Requlred: a. What is the maximum price that Civic Division should pay? b. What is the maximum transfer price that Business Division should obtain for its services, assuming that it Is operating at capacity? c-1. Is there any change in maximum price as Indicated in part (a), If Business Division had idle capacity? c-2. Is there any change in maximum transfer price as indicated in part (b), If Business DIvision had idle capacity? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is the maximum transfer price that Business Division should obtain for its services, assuming that it is operating atStep by Step Solution
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