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Pronghorn's Division A produces a product that can be sold for $212 or transferred to Division B as a component for its product. Division B
Pronghorn's Division A produces a product that can be sold for $212 or transferred to Division B as a component for its product. Division B can buy the part from another suppler at $190. In the current period, Division B purchased 500 units from Division A. Data on a per-unit basis follows: Selling price Variable cost Allocated fixed cost Division A $212 107 94 Division B $570 197 161 The variable cost in Division B does not include the cost of the component provided by Division A or the outside supplier. Calculate the minimum transfer price if Division A is operating at capacity. Minimum transfer price LINK TO TEXT LINK TO TEXT Calculate the minimum transfer price if Division A is operating below capacity. Minimum transfer price $ Calculate the effect on the company's contribution margin if Division A has excess capacity and Division B buys 500 units from the outside supplier. (Show a negative amount preceded by a minus sign, e.g. -500 or (500).) Effect on contribution margin LINK TO TEXT LINK TO TEXT Calculate the contribution margin for the company for 500 units if Division A is required to sell to Division B when there is no excess capacity. Contribution margin $ LINK TO TEXT LINK TO TEXT Calculate the contribution margin for the company if Division A is at capacity and sells 500 units to the external market and Division B purchases 500 units from an outside supplier. Contribution margin
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