Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Heating Division of Kobe International produces a heating element that it sells to its customers for $46 per unit. Its variable cost per unit
The Heating Division of Kobe International produces a heating element that it sells to its customers for $46 per unit. Its variable cost per unit is $26, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 14,900 heating units to another division within the company at a price of $27. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept? Minimum transfer price $ The Heating Division of Kobe International produces a heating element that it sells to its customers for $38 per unit. Its variable cost per unit is $20, and its fixed cost per unit is $12. Top management of Kobe International would like the Heating Division to transfer 15,400 heating units to another division within the company at a price of $30. Assume that the Heating Division has sufficient excess capacity to provide the 15,400 heating units to the other division. What is the minimum transfer price that the Heating Division should accept? Minimum transfer price $ The Heating Division of Kobe International produces a heating element that it sells to its customers for $46 per unit. Its variable cost per unit is $29, and its fixed cost per unit is $5. Top management of Kobe International would like the Heating Division to transfer 14,800 heating units to another division within the company at a price of $32. The Heating Division is operating at full capacity. Assume that the units being requested are special high-performance units and that the division's variable cost would be $30 per unit (rather than \$29). What is the minimum transfer price that the Heating Division should accept? Minimum transfer price $ Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis. (a) Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price $ per unit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started