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Uma Corp. has two divisions: Parts and Assembly. The Parts Division makes Part L2 for sale to outside customers. Production capacity Demand from outside customers

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Uma Corp. has two divisions: Parts and Assembly. The Parts Division makes Part L2 for sale to outside customers. Production capacity Demand from outside customers Per unit data for L2 for outside customers 25,000 units per month 23,000 units per month Selling price $20.00 Variable production cost $15.00 Variable selling cost $2.5 Allocated fixed cost $1.25 The Assembly Division has designed a new product that also uses Part L2. For its new product, the Assembly Division would need 3,200 units of L2 each month, and the Parts Division would not incur variable selling costs for these units. Q. Assuming the Parts Division would cut bac on sales to outside customers in order to supply L2 to the Assembly Division (if necessary), what is the lowest acceptable transfer price from the viewpoint of the selling division? (Do not round intermediate calculations. Round the final numbers to two decimal places.) A$ per unit Wicha Company produces three products with the following information: Selling price per unit Variable cost per unit Machine-hours per unit (MH/unit) Good $17 $8 2 Product Better $19 $10 3 Best $26 $12 4 The company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $37,000. The demand for each of the products is 2,500 units per month The company's goal is to maximize its profitability Suppose the company can rent a machine that will provide an additional 1,150 machine-hours per month. Q. What is the maximum monthly rent the company should be willing to pay for this machine (assuming they've made optimal use of their own machine)? AS

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