cussions Question 7 -/1 ferences View Policies aborations Current Attempt in Progress eyPLUS Support The Plastics Division of Weston Company manufactures plastic molds and then sells them to customers for $70 per unit. Its L Central variable cost is $30 per unit, and its fixed cost per unit is $10. Management would like the Plastics Division to transfer 10,000 of these molds to another division within the company at a price of $40. The Plastics Division has excess capacity of 10,000 units for plastic moldings. What is the minimum transfer price that the Plastics Division should accept? fice 365 dges azza O $40. O $30. $10. $70. 8:43 PM 11/18/2019 Chp n ins prt sc home no end pg up delete 44 backspace lock P home

H1. Account

Exercise 11-7 (Algo) Transfer Pricing from the Viewpoint of the Entire Company (LO11-3] Division A manufactures electronic circuit boards that can be sold to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A: Selling price per circuit board Variable cost per circuit board Number of circuit boards: Produced during the year Sold to outside customers Sold to Division B $ 189 $ 120 20,300 14,500 5,800 Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in an electronic instrument manufactured by that division (one board per instrument). Division B incurred $300 in additional variable cost per instrument and then sold the instruments for $690 each. Required: 1. Calculate the net operating incomes earned by Division A, Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 20,300 circuit boards. Next year, Division B wants…

D% A company has three products-Beta, Chi, and Delta-that emerge from a joint process. The selling prices and amount of output for each product at the split-off point are as follows: Amount of Selling Price Output 14,000 pounds 18,000 pounds 19,000 pounds apse Product Beta $33 per pound points Chi $29 per pound Delta $24 per pound 8 00:36:54 Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Additional Selling Price $37 per pound $34 per pound $30 per pound Product Processing Costs $65,000 Beta Chi $75,500 Delta $70,000 What is financial advantage (disadvantage) of further processing Product Chi?