Pead the conutementin Requirements More info 1. What is the highest acceptable tansler perce fat the butedns? 2. Assuming the tatiker prite is negotates betweve the bvisen ed lhe concane what wodis be cely poce woud the manage tot the Cotediar Dvion preled (ifoced your anywer to the murest oent) Jeur antew is the nedrest cove ] Assume the Smal Components Divson of Martin Manutactunng produces a video card used in the assembly of a vaniety of electronc products. (1) (Cick the icon to vew addhional information) Read the Requirement 1. What is the highes accestable transter price tor the divisons? The tuohest acceptable transles phice for the divisions is the Simal Components Divilion's Requirement 2. Assuming the transfer price s nogoteated between the divions of the company what would be the lowest accoptable transfer pricer Assume varable seying empenses periain fo cutb only The lowet acceotable transfer once for the divisons is the Smal Combonents Divisons p Requirement 3. Which transler price would the manager of the Smal Components Divion preter? Which transler pice woud fio manager of the Computer Division prefor? The manager of twe Smial Coropinents Divisen would proter a tranter pnce of The manage of the Compuse Dvision would preter a tanster price of 1. What is the highest acceptable transfer price for the divisions? 2. Assuming the transfer price is negotiated between the divisions of the company, what would be the lowest acceptable transfer price? Assume variable selling expenses pertain to outside sales only. 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 6%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overhead decreasing by $1.00 per unit. (Round your answer to the nearest cent.) 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 22%, what transfer price would be used? Assume that the company does not consider fixed manufacturing overhead in setting its internal transfer price in this scenario (Round your answer to the nearest cent.) 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 110% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $1.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent) Pead the conutementin Requirements More info 1. What is the highest acceptable tansler perce fat the butedns? 2. Assuming the tatiker prite is negotates betweve the bvisen ed lhe concane what wodis be cely poce woud the manage tot the Cotediar Dvion preled (ifoced your anywer to the murest oent) Jeur antew is the nedrest cove ] Assume the Smal Components Divson of Martin Manutactunng produces a video card used in the assembly of a vaniety of electronc products. (1) (Cick the icon to vew addhional information) Read the Requirement 1. What is the highes accestable transter price tor the divisons? The tuohest acceptable transles phice for the divisions is the Simal Components Divilion's Requirement 2. Assuming the transfer price s nogoteated between the divions of the company what would be the lowest accoptable transfer pricer Assume varable seying empenses periain fo cutb only The lowet acceotable transfer once for the divisons is the Smal Combonents Divisons p Requirement 3. Which transler price would the manager of the Smal Components Divion preter? Which transler pice woud fio manager of the Computer Division prefor? The manager of twe Smial Coropinents Divisen would proter a tranter pnce of The manage of the Compuse Dvision would preter a tanster price of 1. What is the highest acceptable transfer price for the divisions? 2. Assuming the transfer price is negotiated between the divisions of the company, what would be the lowest acceptable transfer price? Assume variable selling expenses pertain to outside sales only. 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 6%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overhead decreasing by $1.00 per unit. (Round your answer to the nearest cent.) 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 22%, what transfer price would be used? Assume that the company does not consider fixed manufacturing overhead in setting its internal transfer price in this scenario (Round your answer to the nearest cent.) 6. Assume now that the company does incur the variable selling expenses on internal transfers. If the company policy is to set transfer prices at 110% of the sum of the full absorption cost and the variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing overhead would drop by $1.00 per unit as a result of the increased production resulting from the internal transfers. (Round your answer to the nearest cent)
