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Word Novakis a pulithine compamy wh a fumber of deterent beok Inec. Fach lwe has contracis with a number of ditierent authors The compuar also

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Word Novakis a pulithine compamy wh a fumber of deterent beok Inec. Fach lwe has contracis with a number of ditierent authors The compuar also ewes a printing operation called Quik Press. The book lines and the printing eperation each operate as a 10 , prads center. The ptinting oferation eacns revenue by printine beoks by authors under contract with tho book finet cwasd by Wans Navac, as well at authori under contract wh other comparies. The printirt operation bith cut at 50 of per puge, and a typical book printine operatien eftering to pay $0.007 per peke for 1500 copies af a 400 page book. The book line povs outside pricters 50006 per pact. The brieting operations variable cost per psze is 90003 Determine whether the printing woyld be dise inernalr or exteralig and the aperuselate trumier price coder each of the follewers situations. (a) Fintife shests be dose Mirimeim iranster enice 1 elextionk andMesta Attempte 8 etaned (b) Assume that the printing operation is booked solid for the next 2 years, and it would have to cancel an obligation with an outside customer in order to meet the needs of the internal division. (Round Transfer price to 4 decimal ploces, es. 0.1810 ) Printingshould be done Minimum transfer price 5 eTextbook and Medis Attempts: 0 of 3 used (b) The parts of this question must be eompleted in order. This part wal be avalable when you complete the part about: Word Novak is a publishing company with a number of different book lines. Each line has contracts with a number of different authors. The company also own5 a printing operation called Quick Press. The booklines and the printing operation each operate as a separate profit center. The printing operation earns revenue by printing books by authors under contract with the book lines owned by Word Novak, as well as authors under contract with other companies. The printing operation bills cut at so01 per page, and a typical book requires 480 pages of print. A manager frem Bukiness Books, one of Word Novak's book lines, has approached the manager of the printing operation offering to pay $0.007 per page for 1,500 copies of a 480 -page book, The book line pays outside printers 50.00d per page The printing operation's variable cost per page is $0.003 Determine whether the printins shouid be dene internally or externally, and the appropriate transfer price, under each of the followingsituations. (a) Assume that the printine operation is booked solid for the next 2 years and it would have to cancel an oblieatien with an outsith customer in order to meet the needs of the internal division, (Round Tranter price to 4 decimal places, es, 0.1810 ) Printing should be done Minimum transfer grice

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