Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 11 1 pts Division A makes a part with the following characteristics: Production capacity in units. Selling price to outside customers Variable cost per

image text in transcribed
image text in transcribed
Question 11 1 pts Division A makes a part with the following characteristics: Production capacity in units. Selling price to outside customers Variable cost per unit Total fixed costs 15.000 units $25 S18 $60.000 Refer back to your answer in the last problem. Division B is now purchasing these parts from an outside supplier at a price of $24 each. If Division B begins to purchase the 5,000 parts from Division A rather than the outside supplier, what is the company as a whole change in net income? ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DISCRIPTIONS Make sure to enter your answer as a positive number (increase) or a negative number (decrease). 24 D Question 10 1 pts Division A makes a part with the following characteristics: Production capacity in units.. Selling price to outside customers Variable cost per unit Total fixed costs 15.000 units $25 $18 $60,000 Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division A is currently selling 10,000 units to its outside customers. What should be the lowest acceptable transfer price from the perspective of Division A? 5,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions