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The next two questions pertain to the same company tume Company produces a part that it sells to other companies Sales and cont das for
The next two questions pertain to the same company tume Company produces a part that it sells to other companies Sales and cont das for the pr follow Capacity in units Selling price per unit 60,000 nits S 45.00 per n s 28.00 per un S 2.00 per s 9.00 er t Variable manufacturing costs per un Variable selling cost per unit Fixed costs per unit at capacity Assembly Di vision of Hume Compony would like to buy this part from Parts Division Assembly Divsoni s presently purchasing the part from an outside source at 517 per unit. Parts Division sells to Assebly Division, variable selling costs can be avoided Currently Parts Division is operating at capacity and seling all iu produces What is the lowest acceptable trafer price from the viewpoint of the setling division A. $43.00 B$37.00 C $28.00 D. $39.00 E. None of the above Parts Division is considering rel capacity by 50%. Fixed costs per unit at the new capacity will be SS per unit. Assume that the demand for the product remains the same. If Assenbly Division needs 40,000 units of the part, what is the minimum transfer price Parts Division requires if they purchase the equipment? A. $28,00 B. $31.75 C. $43.00 D. $32.25 E. None of the above 4
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