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The Lumber Division of Waterway Industries produces and sells lumber that can be sold to outside customers or within the company to the Construction Division.
The Lumber Division of Waterway Industries produces and sells lumber that can be sold to outside customers or within the company to the Construction Division. The following data have been gathered for the coming period: 240000 board feet $5.50 $1.25 Lumber Division: Capacity Price per board foot Variable production cost per bd. ft. Variable selling cost per bd. ft. Construction Division: Board feet needed Outside price paid per bd. ft: $0.50 60000 $5 If the Lumber Division sells to the Construction Division, $0.45 per board foot can be saved in shipping costs. If current outside sales are 150000 board feet what is the minimum transfer price that the Lumber Division could accept? $5.50 O $1.75 $1.30 $1.25 Question 7 of 9 -/1 View Policies Current Attempt in Progress The Wood Division of Concord Corporation manufactures rubber moldings and sells them externally for $45. Its variable cost is $25 per unit, and its fixed cost per unit is $8. Concord's president wants the Wood Division to transfer 4300 units to another company division at a price of $21. Assuming the Wood Division has available capacity of 4300 units, the minimum transfer price it should accept is $8. $45. $21. $25. e Textbook and Media Save for Later Current Attempt in Progress The Can Division of Bramble Corp. manufactures and sells tin cans externally for $1.20 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.11, respectively. The Packaging Division wants to purchase 50,000 cans at $0.35 a can. Selling internally will save $0.03 a can. Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept? $0.32 $0.21 $0.35 $0.24 Touthaal
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