Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

USE THE FOLLOWING INFO FOR QUESTIONS 34&35 Given the following data for Division S: 34. This is an IDLEJEXCESS CAPACITY question. Division B would like

image text in transcribed
USE THE FOLLOWING INFO FOR QUESTIONS 34&35 Given the following data for Division S: 34. This is an IDLEJEXCESS CAPACITY question. Division B would like to purchase 20,000 units from Division S at a negotiated transfer price of $145 per unit. Division S has idle/excess capacity to handle Division B's requirements. Division B currently purchases from an outside suppler at a price of $165. If Division S accepts a $145 negotiated transfer price, the company, as a whole, (Make/Buy schedule) will be A) $1,600,000 B) $1,300,000 C) $(1,600,000) D) $(1,300,000) 16 35. This is a FULL CAPACITY question. Division B would like to purchase 20,000 units from Division S at a negotiated transfer price of $145 per unit. Division S is at full capacity and therefore does not have the capacity to handle Division B's requirements. Divislon B currently purchases from an outside supplier at a price of $165. If Division S accepts a $145 negotiated transfer price, the company, as a whole, (Make/Buy schedule) will be A) $(300,000) B) $300,000 C) $(160,000) D) $160,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Security Of Computerisation In Accounting And Auditing System

Authors: M.S. Baghel

1st Edition

8178801132, 978-8178801131

More Books

Students also viewed these Accounting questions

Question

List the parts of the limbic system, and explain its functions.

Answered: 1 week ago

Question

Identify five strategies to prevent workplace bullying.

Answered: 1 week ago