Teaucation.com%252FmghmSavedAssume a company has two divisions, Division A and Division B. Division A has provided the following information regording the one product that it monufactures and sells on the outside morket.Selling price per unit (on the outside market)Variable cost per unitFixed costs per unit (based on capacity)Capacity in units448.20,000Division B could use Division A's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received o quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes.Also assume thot the compony's divisional managers ore evaluoted based on theiir division's profits and that Division A is currently selling 15,000 units on the outside market. What is the range of acceptable transfer prices between the two divisions?Multiple Cholce$44 Transfer price $60$52 Transfer prices S60$525 Transfer prices $58$44 Transter price s $58

This question deals with the determining transfer price between both the department. Transfer price…

Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market Selling price per unit (on the outside market) Variable cost per unit %24 60 44 Fixed costs per unit (based on capacity) Capacity in units 20, 800 Division could use Division A's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes Also assume that the company's divisional managers are evaluated based on their division's profits and that Division A is currently selling 15,000 units on the outside market. What is the range of acceptable transfer prices between the two divisions? Multiple Cholce $44 S Transfer price s $60 $525 Transfer prices s60 $52STransfer prices $5e $44 S Transfer price s $58

Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market Selling price per unit (on the outside market) Variable cost per unit %24 60 44 Fixed costs per unit (based on capacity) Capacity in units 20, 800 Division could use Division A's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes Also assume that the company's divisional managers are evaluated based on their division's profits and that Division A is currently selling 15,000 units on the outside market. What is the range of acceptable transfer prices between the two divisions? Multiple Cholce $44 S Transfer price s $60 $525 Transfer prices s60 $52STransfer prices $5e $44 S Transfer price s $58

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The company Percival AS has set up the following unit calculation: Sales price per unit 50 000 Direct material costs (DM) 15,000 Direct labor costs (DL) 10,000 Indirect variable costs in the manufacturing department 2,000 Indirect fixed costs in the manufacturing department 5,000 Total manufacturing costs 32 000 Indirect variable costs in the sales department 3,000 Indirect fixed costs in the sales department 8,000 Self-catering 43 000 Profit 7,000 The calculation is based on normal production and sales per period of 1,000 units. The fasting the costs are operationally independent within the maximum capacity (1,200 units per period).
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