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Please answer all the parts correct, really need this. Thank you! Chapter 11A Help Save & Exit Submit 5 10 Case 11A-7 Transfer Pricing; Divisional

Please answer all the parts correct, really need this.
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Chapter 11A Help Save & Exit Submit 5 10 Case 11A-7 Transfer Pricing; Divisional Performance [L011-5] 10 items, including an X52 electrical fitting. The Electrical for $8.70 each; the fitting has a variable manufacturing cost of $4.80. (which is operating at capacity) sells this fitting to its regular customers The company's Brake Division has asked the Electrical Division to supplyit The Brake Division, which is operating at 50% of capacity, will put the fitting into a brake unit that it will produce and sell to a large commercial airline manufacturer. The cost of the brake unit being built by the Brake Division follows: with a large quantity of X52 fittings for only $6.70 each. Other variable costs Fixed Total cost per brake unit 6.70 14.53 8.60 $53.63 Although the $6.70 price for the X52 fitting represents a substantial discount from the regular $8.70 price, the manager of the Brake is to get the contract for the airplane brake units. He has heard that the airplane manufacturer plans to reject his bid if it is more than $55 per brake unit. Thus, if the Brake Division is forced to pay the regular $8.70 price for the X52 fitting, it will either not get the contract or it will suffer a substantial loss at a time when it is already operating at only 50% of capacity. The magager of the Brake Division argues that the price concession is imperative to the well-being of both his division and the company as a whole. Weller Industries uses return on investment (ROI to measure divisional performance. Prev5 of 5 Next

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