Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

see attachment, ASAP, thank you.....................................................please correct Alpha International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $77 per

see attachment, ASAP, thank you.....................................................please correct

image text in transcribed Alpha International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $77 per unit, with the following costs based on its capacity of 216,?00 units: Died mateals $28.00 Direct labour 17.00 Variable overhead 3.00 Fixed overhead 15.00 Beta is operating at 23% of normal capacity and gama is purchasing 15,500 units of the same component from an outside supplier for $71 per unit. Calculate the benet, if any, to beta in selling to gama 15,500 at the outside supplier's price. Benet $ per ui: Calculate the lowest price beta would be willing to accept. Lowe price $ If beta is operating at full capacity what would be the low est transfer that beta division is willing to accept? Lowest transfer plice $ Assume that a transfer price of $3??? is used between beta and gamma. Calculate the effect on the prots of beta, gamma and Alpha Intemational Corporation. Beta is |:l Gamma $ l:l Abba s |:l

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Management Leading And Collaborating In A Competitive World

Authors: Thomas S Bateman, Scott A Snell, Robert Konopaske

15th International Edition

978-1265051303

Students also viewed these Accounting questions

Question

Salary (if known)

Answered: 1 week ago