Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What should be the minimum transfer price accepted by Division B for the 10,000 lamps and the maximum transfer price paid by Division A? Minimum

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
What should be the minimum transfer price accepted by Division B for the 10,000 lamps and the maximum transfer price paid by Division A? Minimum transfer price accepted by Division B per unit Maximum transfer price paid by Division A If Division A needs 15,000 lamps instead of 10,000 during the next year, what should be the minimum transfer price accepted by Division B and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, eg. 10.50) Minimum transfer price accepted by Division B per unit Maximum transfer price paid by Division A Suppose Division B could use the excess capacity to produce and sell externally 15,000 units of a new product at a unit selling price of $7. The unit variable cost for this new product is $5. What should be the minimum transfer price accepted by Division B for the 10,000 lamps and the maximum transfer price paid by Division A? Minimum transfer price accepted by Division B perunit Maximum transfer price paid by Division A Crede inc has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $10 from an outside vendor. Division A needs 10,000 lamps for the coming year, Division B has the capacity to manufacture 50,000 lamps annually. Sales to outside customers are estimated at 40,000 lamps for the next year, Reading lamps are sold at $12 each. Variable costs are $7 per famp and include $1 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $80,000. Consider the following independent situations

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

Auditing Transformation Regulation Digitalisation And Sustainability

Authors: Jan Marton, Fredrik Nilsson, Peter Öhman

1st Edition

103253303X, 978-1032533032

More Books

Students also viewed these Accounting questions

Question

5. Is your hero motivated, at least in part, by guilt?

Answered: 1 week ago

Question

explain what is meant by redundancy

Answered: 1 week ago