Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price
The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of 100 each. Each trailer incurs $38 of variable manufacturing costs. The Traller division has capacity for 29,000 trailers per year and incurs fixed costs of $540,000 per year, Required: 1. Assume the Assembly division of Baxter Bicycles wants to buy 4,600 trailers per year from the Trailer division. If the Trailer division can sell all of the trallers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles's divisions? 2. Assume the Trailer division currently only sells 10,400 Trailers to outside customers, and the Assembly division wants to buy 4,600 trailers per year from the Trailer division. What is the range of acceptable prices that could be used on transfers between Baxter Bicycles's divisions? 1 Transfer price per trailer Transfer price per trailer will be at least 2 but not more than Accounts payable, end of year Accounts receivable, net, end of year Inventory, end of year Net sales Cost of goods sold (5 millions) $ 49,049 17,874 4,855 229, 234 141, 048 Use the information above to compute the number of days in the cash conversion cycle for Apple (Use 365 days in a year. Round calculations to the nearest whole day. Negative numbers should be indicated by a minus sign.) Cash conversion cycle days
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