Division A makes a part with the following characteristics: **SEE IMAGE TO SEE DETAILS** a} Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division A is currently selling 15,000 units to its outside customers. What should be the lowest acceptable transfer price from the perspective of Division A? b] Refer back to your answer in the last problem. Division B is now purchasing these parts from an outside supplier at a price of $24 each. If Division B begins to purchase the 5,000 parts from Division A rather than the outside supplier, what is the company as a whole change in net income? ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DISCRIPTIONS c) Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division A is currently selling 15,000 units to its outside customers. IF the transfer is made, variable costs will decrease by $2 per unit. What should be the lowest acceptable transfer price from the perspective of Division A?
Division A makes a part with the following characteristics:
**SEE IMAGE TO SEE DETAILS**
a} Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division A is currently selling 15,000 units to its outside customers. What should be the lowest acceptable transfer price from the perspective of Division A?
b]
Refer back to your answer in the last problem. Division B is now purchasing these parts from an outside supplier at a price of $24 each. If Division B begins to purchase the 5,000 parts from Division A rather than the outside supplier, what is the company as a whole change in net income?
ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DISCRIPTIONS
c) Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division A is currently selling 15,000 units to its outside customers. IF the transfer is made, variable costs will decrease by $2 per unit. What should be the lowest acceptable transfer price from the perspective of Division A?
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