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Please give me the answer with necessary calculations Use the following information to answer questions 10 - 13: Winter Company operates two divisions, the Manufacturing
Please give me the answer with necessary calculations
Use the following information to answer questions 10 - 13: Winter Company operates two divisions, the Manufacturing Division and the Assembly Division The Manufacturing Division produces a number of different components which it sells to external customers and to the Assembly Division. Component XYZ has $56 of variable cost and $8 of fixed cost related to it. The Manufacturing Division sells XYZ to its external customers for $80 per unit. The Assembly Division can purchase XYZ from the Manufacturing Division, or it can purchase a similar item from an external supplier for $65 per unit. 10. If the Manufacturing Division has excess capacity, what would be the minimum transfer price the Manufacturing Division should charge the Assembly Division? A. $64 B. $56 C. $65 D. $80 11. If the Manufacturing Division has excess capacity, what is the maximum transfer price the Manufacturing Division could charge the Assembly Division? A. $80 B. $65 C. $56 D. $64 the Manufacturing Division is currently operating at full capacity to satisfy the demand from external customers, what is the minimum transfer price the Manufacturing Division would rept from the Assembly Division? 580 in 13. If the Manufacturing Division is currently operating at full capacity to satisfy the der its external customers, which of the following would be best for Winter Company whole? A. Have the Assembly Division purchase the component from its external supplier and not disrupt the Manufacturing Division's sales to its external custo B. Have the Manufacturing Division sell the component to the Assen even though the Manufacturing Division would los the Manufacturing Division would lose sales to its external customers C. Have the Manufacturing Division sell the component to the As even though the Manufacturing Division would lose sales to its exte D. It does not matter. Either option would have the same ime sell the component to the Assembly Division for e component to the Assembly Division for Id lose sales to its external customers ave the same impact on Winter Company a whole. 20,000 units of output, it has much cost will the company incur When a company operates at 20.000 and fixed costs of $10 per unit. Hos 60.000 units of output? A $1,200.010 51.400.000 c51.800.000 Some other amount any incur if it operates at ble costs of $20 per unitStep by Step Solution
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