Problem 11-23 (Algo) Market-Based Transfer Price [LO11-3] Stavos Company's Screen Division manufactures a standard screen for high-definttion televisions (HDTVs). The cost per screen is: "Based on a capacity of 810,000 screens per year. Part of the Screen Divislon's output is sold to outside manufacturers of HDTVs and part is sold to Stavos Company's Quark DIvision, which produces an HDTV under its own name. The Screen DIvision charges $186 per screen for all sales. The net operating income assoclated with the Quark Divislon's HDTV is computed as follows: The Quark Division has an order from an overseas source for 5.000 HDTVs. The overseas source wants to pay only $407 per unlt. Required: 1. Assume the Quark Division has enough Idle capacity to fill the 5,000-unit order. Is the division likely to accept the $407 price or to reject it? 2 Assume both the Screen Division and the Quark DIvision have Idle capacity. Under these conditions, what is the financlal advantag (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $407 price? 3. Assume the Quark Divislon has Idle capacity but that the Screen DIvislon Is operating at capacity and could sell all of Its screens to outside manufacturers. Under these conditions, what is the financlal advantage (dilsadvantage) for the company as a whole (on a per unit baslis) If the Quark Division accepts the $407 unlt price? Complete this question by entering your answers in the tabs below. Assume the Quark Division has enough idle capacity to fill the 5,000-unit order. Is the division likely to accept the $407 price or to reject it? Problem 11-23 (Algo) Market-Based Transfer Price [LO11-3] Stavos Company's Screen Division manufactures a standard screen for high-definttion televisions (HDTVs). The cost per screen is: "Based on a capacity of 810,000 screens per year. Part of the Screen Divislon's output is sold to outside manufacturers of HDTVs and part is sold to Stavos Company's Quark DIvision, which produces an HDTV under its own name. The Screen DIvision charges $186 per screen for all sales. The net operating income assoclated with the Quark Divislon's HDTV is computed as follows: The Quark Division has an order from an overseas source for 5.000 HDTVs. The overseas source wants to pay only $407 per unlt. Required: 1. Assume the Quark Division has enough Idle capacity to fill the 5,000-unit order. Is the division likely to accept the $407 price or to reject it? 2 Assume both the Screen Division and the Quark DIvision have Idle capacity. Under these conditions, what is the financlal advantag (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $407 price? 3. Assume the Quark Divislon has Idle capacity but that the Screen DIvislon Is operating at capacity and could sell all of Its screens to outside manufacturers. Under these conditions, what is the financlal advantage (dilsadvantage) for the company as a whole (on a per unit baslis) If the Quark Division accepts the $407 unlt price? Complete this question by entering your answers in the tabs below. Assume the Quark Division has enough idle capacity to fill the 5,000-unit order. Is the division likely to accept the $407 price or to reject it? Problem 11-23 (Algo) Market-Based Transfer Price [LO11-3] Stavos Company's Screen Division manufactures a standard screen for high-definttion televislons (HDTVs). The cost per screen is: VariablecostperscreenFixedcostperscreenTotalcostperscreen"Basedonacapacityof810,000$11831$149screensperyear. Part of the Screen Divislon's output is sold to outside manufacturers of HDTVs and part is sold to Stavos Company's Quark Divislon. which produces an HDTV under its own name. The Screen DIvision charges $186 per screen for all sales. The net operating income assoclated with the Quark Division's HDTV Is computed as follows: The Quark Division has an order from an overseas source for 5.000 HDTVs. The overseas source wants to pay only $407 per unlt. Required: 1. Assume the Quark Division has enough Idle capacity to fill the 5,000-unit order. Is the division IIkely to accept the $407 price or to reject it? 2 Assume both the Screen Division and the Quark Division have Idle capacity. Under these conditions, what is the financlal advantac (disadvantage) for the company as a whole (on a per unlt basis) if the Quark Divislon rejects the $407 price? 3. Assume the Quark Divislon has Idle capacity but that the Screen Division is operating at capacity and could sell all of its screens to outside manufacturers. Under these conditions, what is the financlal advantage (disadvantage) for the company as a whole (on a per unit basis) If the Quark Division accepts the $407 unlt price? Complete this question by entering your answers in the tabs below. Assume the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its screens to outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division accepts the $407 unit price? (Any "Financial Disadvantage" amounts should be entered as a negative.) Show lessi Financial advantage (disadvantage) on a per unit basis
