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Vaughn's Division A produces a product that can be sold for $201 or transferred to Division B as a component for its product. Division B
Vaughn's Division A produces a product that can be sold for $201 or transferred to Division B as a component for its product. Division B can buy the part from another suppler at $179. In the current period, Division B purchased 1,300 units from Division A. Data on a per-unit basis follows: Selling price Variable cost Allocated fixed cost Division A $201 92 98 Division B $648 204 171 The variable cost in Division does not include the cost of the component provided by Division A or the outside supplier. x Your answer is incorrect. Try again. Calculate the minimum transfer price if Division A is operating at capacity. Minimum transfer price 92 LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Calculate the minimum transfer price if Division A is operating below capacity. Calculate the effect on the company's contribution margin if Division A has excess capacity and Division B buys 1,300 units from the outside supplier. (Show a negative amount preceded by a minus sign, e.g. -500 or (500).) Effect on contribution margin 28,600 LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Calculate the contribution margin for the company for 1,300 units if Division A is required to sell to Division B when there is no excess capacity. Contribution margin 141,700 LINK TO TEXT LINK TO TEXT X Your answer is incorrect. Try again. Calculate the contribution margin for the company if Division A is at capacity and sells 1,300 units to the external market and Division B purchases 1,300 units from an outside supplier Contribution margin 91,000
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