please solve within 15 minute Q- 7:Collyer Products, Inc., has a Valve Division that manufactures and sells a standard valve:Capacity in unitsSales price to outside customersFixed Cost per unit (based on capacity)Variable cost per unit50,000$30$16$9The company has a Pump Division that could use this valve in one of its pumps. The PumpDivision is currently purchasing 10,000 valves per year from an overseas supplier at a cost of$29 per valve.Required:1. Assume that the Valve Division has enough idle capacity to handle all of the Pump Division's needs.What is the acceptable range, if any, for the transfer price between the two divisions?2. Assume that the Valve Division is selling all of the valves it can produce to outside customers.What is the acceptable range, if any, for the transfer price between the two divisions?

1) Because the Valve Divisiion has idle capacity, it does not have to give up any outside sales to…

Collyer Products, Inc., has a Valve Division that manufactures and sells a standard valve: Capacity in units Sales price to outside customers Fixed Cost per unit (based on capacity) Variable cost per unit 50,000 $30 $16 $9 The company has a Pump Division that could use this valve in one of its pumps. The Pump

Collyer Products, Inc., has a Valve Division that manufactures and sells a standard valve: Capacity in units Sales price to outside customers Fixed Cost per unit (based on capacity) Variable cost per unit 50,000 $30 $16 $9 The company has a Pump Division that could use this valve in one of its pumps. The Pump

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...

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