Page 19 of 38 Question 19 (2.5 points) A purchases budget is used instead of a production budget by not-for-profit organizations. merchandising companies. O manufacturing companies service enterprises. Question 20 (2.5 points) Tutte Motorcycles in manufactures and set high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division. It has been decided that the Engine Division will sell 20.000 units to the Production Division at $1,050 a unit. The Engine Division, currently operating at full capacity, has a un sales price of $2,550 and unit variable costs and fixed costs of $1,050 and $750, respectively. The Production Division is currently paying $2,400 per unit to an outside supplier $90 per unit can be saved on internal sales from reduced selling expenses What is the minimum transfer price that the Engine Division should accept? 2,550 2,460 1,500 2,400 Page 21 of 38 Question 21 (2.5 points) The cost plus pricing approach's major advantage is It can be used to determine a product's target cost Oit considers customer demand. O it is simple to compute. O that sales volume has no effect on per unit costs. Previous Page Next Page Page 21 of 38 Question 22 (2.5 points) Denmark Corporation's variance report for the purchasing department reports 1,000 units of material A purchased and 2,400 units of material B purchased. It also reports standard prices of $2 for Material A and $3 for Material B. Actual prices reported are $2.10 for Material A and $2.80 for Material B. Denmark should report a total price variance of $380 F. $340 F. O $380 U. $340 U