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TK Electronics is a manufacturer with the departments: Computer Chips and Cell Phones. The computer chip that is produced in the Chips Department can be

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TK Electronics is a manufacturer with the departments: Computer Chips and Cell Phones. The computer chip that is produced in the Chips Department can be sold to customers at $6.00 per chip. The costs associated with the computer chips are as follows: Click the loan to view the costs.) The Cell Phone Department has been purchasing the chips that needs for $3.75 per chip from Chips, but the manager was thinking at the Chips Department could supply the chips for less than what eChips is asking, then I would arrange a transfer between departments n ad of giving the business to an extemal company the Cell Phone Department needs 100.000 comprches and current production in the Chips Department is 360,000 chips, should a transfer take place? If so, what price? (Note: For internal transfers, the selling and administrative cont r oduced to $1.06 per unit) What other qualitative factors and to be considered? First, let's determine la transfer should take place. Begin by determining the minimum transfer price The minimum transfer price is The Internal transfer take place. The price for the internal transfer should fall between and What other qualitative factors might need to be considered? Other factors to consider would be the relationship that the Cell Phone Division has with its Phone Division be able to The Chips Division may also require some down time for equipment maintenance If the Chips Division is only able to transfer chips MASTER w will the Coll Won for employees, for example) and a reduced workload for a short period may be Enter your answer in each of the answer boxes Costs Variable manufacturing costs 2.45 Variable selling and administrative costs Capacity 1.60 725,000 units 725,000 units Current production Print Done K Electronics is a manufacturer with two departments Computer Chips and Cell Phones. The computer chip that is produced in the Chips Department can be sold to customers at $6.00 per chip. The costs associated vith the computer chips are as follows: (Click the loon to view the costs) The Cell Phone Department has been purchasing the chips that it needs for $3.75 per chip from Chips, but the manager was thinking that if the Chips Department could supply the chips for less than what Chips is asking, then it would arrange a transfer between departments instead of giving the business to an endomal company. the Cell Phone Department needs 180,000 computer chips and current production in the Chips Department is 360.000 chips, should a transfer take place? If so, at what price? (Note: For internal transfers, the selling and administrative coats are reduced to 1.05 per unit) What other unive factors might need to be considered? First, let's determine a transfer should take place. Begin by determining the minimum transfer price The minimum transfer price is $ The internal re t ake place The price for the internal transfer should all between S ands What other qualitative factors might need to be considered? Other factors to consider would be the relationship that the Cell Phone Division has with h e Chips Division is only able to transfer chips wil the Phone Division be able to for additional orders? The Chips Division may sino require some downtime for equipment maintenance or other things perhaps summer vacations for employees, for examples and a reduced workload for a short period may be end Enter your answer in each of the answer boxes TK Electronics is a manufacturer with the departments: Computer Chips and Cell Phones. The computer chip that is produced in the Chips Department can be sold to customers at $6.00 per chip. The costs associated with the computer chips are as follows: Click the loan to view the costs.) The Cell Phone Department has been purchasing the chips that needs for $3.75 per chip from Chips, but the manager was thinking at the Chips Department could supply the chips for less than what eChips is asking, then I would arrange a transfer between departments n ad of giving the business to an extemal company the Cell Phone Department needs 100.000 comprches and current production in the Chips Department is 360,000 chips, should a transfer take place? If so, what price? (Note: For internal transfers, the selling and administrative cont r oduced to $1.06 per unit) What other qualitative factors and to be considered? First, let's determine la transfer should take place. Begin by determining the minimum transfer price The minimum transfer price is The Internal transfer take place. The price for the internal transfer should fall between and What other qualitative factors might need to be considered? Other factors to consider would be the relationship that the Cell Phone Division has with its Phone Division be able to The Chips Division may also require some down time for equipment maintenance If the Chips Division is only able to transfer chips MASTER w will the Coll Won for employees, for example) and a reduced workload for a short period may be Enter your answer in each of the answer boxes Costs Variable manufacturing costs 2.45 Variable selling and administrative costs Capacity 1.60 725,000 units 725,000 units Current production Print Done K Electronics is a manufacturer with two departments Computer Chips and Cell Phones. The computer chip that is produced in the Chips Department can be sold to customers at $6.00 per chip. The costs associated vith the computer chips are as follows: (Click the loon to view the costs) The Cell Phone Department has been purchasing the chips that it needs for $3.75 per chip from Chips, but the manager was thinking that if the Chips Department could supply the chips for less than what Chips is asking, then it would arrange a transfer between departments instead of giving the business to an endomal company. the Cell Phone Department needs 180,000 computer chips and current production in the Chips Department is 360.000 chips, should a transfer take place? If so, at what price? (Note: For internal transfers, the selling and administrative coats are reduced to 1.05 per unit) What other unive factors might need to be considered? First, let's determine a transfer should take place. Begin by determining the minimum transfer price The minimum transfer price is $ The internal re t ake place The price for the internal transfer should all between S ands What other qualitative factors might need to be considered? Other factors to consider would be the relationship that the Cell Phone Division has with h e Chips Division is only able to transfer chips wil the Phone Division be able to for additional orders? The Chips Division may sino require some downtime for equipment maintenance or other things perhaps summer vacations for employees, for examples and a reduced workload for a short period may be end Enter your answer in each of the answer boxes

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