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Wildhorse Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its return on investment.
Wildhorse Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its return on investment. Vancouver has the capacity to manufacture 210,000 units of component TR222. Vancouver's variable costs are $150 per unit. Kamloops uses component TR222 in one of its products. Kamloops adds $90 of variable costs to the component and sells the final product for $465. Consider the following independent situations: Vancouver can sell all 210,000 units of TR222 on the open market at a price of $251 per unit. Kamloops is willing to buy 21,000 of those units What should the transfer price be? Transfer price $ eTextbook and Media per unit Of the 210,000 units of component TR222 it can produce, Vancouver can sell 147,000 units on the open market at a price of $251 per unit. Kamloops is willing to buy an additional 21,000 units What should the minimum transfer price be? Minimum transfer price per unit eTextbook and Media Of the 210,000 units of component TR222 it can produce, Vancouver can sell 147,000 units on the open market at a price of $251 per unit. Kamloops is willing to buy an additional 21,000 units. What should the minimum transfer price be? Minimum transfer price $ per unit eTextbook and Media Of the 210,000 units of component TR222 it can produce, Vancouver can sell 168,000 units on the open market at a price of $251 per unit. Kamloops is willing to buy an additional 63,000 units. What should the transfer price be? (Round answer to 2 decimal places, eg. 52.75.) Transfer price $ eTextbook and Media. per unit
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