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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
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 |:lStep by Step Solution
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