Problem 11-23 (Algo) Market-Based Transfer Price [LO11-3] Stavos Company's Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen is: af. Part of the Screen Division's output is sold to outside manufacturers of HDTVs and part is sold to Stavos Company's Quark Dision. which produces an HDTV under its own name. The Screen Division charges $183 per screen for all sales. The net operating income assoclated with the Quark Division's HDTV is computed as follows: Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $394 price? (Any "Financial Disadvantage" amounts should be entered as a negative.) The Quark Division has an order from an overseas source for 4,900 HDTVs. The overseas source wants to pay only $394 per unit. Required: 1. Assume the Quark Division has enough Idle capacity to fill the 4,900-unit order. Is the division likely to accept the $394 price or to reject it? 2 Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) If the Quark Division rejects the \$394 price? 3. 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 $394 unit price? 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 Complete this question by entering your answers in the tabs below. be entered as a negative.) Assume the Quark Division has enough idle capacity to fill the 4,900-unit order. Is the division likely to accept the $394 price or to reject it
