The Appralisal Department of Cullumber Mortgage Bank performs appraisals of business properties for loans being considered by the bank and appraisals for home buyers that are financing their purchase through some other financial institution. The department charges $245 per home appraisal and its variable costs are $200 per appraisal Recently, Cullumber Mortgage Bank has opened its own Home-Loan Department and wants the Appraisal Department to perform 1,220 appraisals on all Cullumber Mortgage Bank-financed home loans. Bank management feels that the cost of these appraisals to the Home-Loan Department should be \$230. The variable cost per appraisal to the Home-Loan Department would be $10 less than those performed for outside customers due to savings in administrative costs. (a) Determine the minimum transter price assuming that the Appraisal Department has excess capacity. Minimum transfer price 5 The Crane Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market. Division B currently uses this sub-assembly for a final product that is sold outside at \$984. Division A charges Division B the market price of $574 per unit of the part. Unit variable costs are $434 and $492 for Divisions A and B, respectively. The manager of Division B feels that Division A should transter the part at a lower price than market because at market, Division B is unable to make a proft: (a) Calculate Division B's contribution marein if transfers are made at the market price, and calculate the company's total contribution margin (Enter nepotive amounts using either a negotive sign preceding the number es. -45 or parentheses es. (45)) Division B's contribution margin Company's total contribution margin Sheridan Corporation manufactures wireless soundbar speakers. It is a division of Vany TV, which manufactures teievisions, Sheridan selis the speakers to Vany as well as to retail stores. The following information is available for Sheridan's speaker unit variable cost $60; unit fixed cost $48; and a unit selling price of $132 to outside customers. Vany currently purchases speakers from an outside supplier for $124 each. Top management of Vany would like Sheridan to provide 46,000 speakers per year at a transfer price of $60 each. (a) Compute the minimum transfer price that Sheridan should accept assumping Sheridan is operating at full capacity. Minimum transter price $