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Question 5 5 out of 0 points Stills Company expects the following results: Sales A: (10,000 x $160) B: (25,000 x $72) Variable costs Contribution
Question 5 5 out of 0 points Stills Company expects the following results: Sales A: (10,000 x $160) B: (25,000 x $72) Variable costs Contribution margin Fixed costs Profit Division A Division B $1,600,000 $1,800,000 1.360.000 900.000 $240,000 $ 900,000 160.000 360.000 $ 80.000 $ 540.000 Included in Division A's costs are 10,000 units of a subcomponent purchased from an outside supplier for $45. The managers have recently initiated negotiations for Division B to supply the components to Division A. Division B has a total capacity of 40,000 units. Required: a. Prepare a new segment reporting statement for Stills, assuming an internal transfer at the maximum transfer price. b. Prepare a new segment reporting statement for Stills, assuming an internal transfer at the minimum transfer price
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