The Can Division of Crane Company manufactures and sells tin cans externally for $0.70 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.07, respectively. The Packaging Division wants to purchase 50,000 cans at $0.31 a can. Selling internally will save $0.05 a can. Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept? $0.67 $0.39 $0.36 $0.65

Q: The Wood Division of Wildhorse Products Inc. manufactures wood mouldings and sells them externally…

A: Formula: Minimum transfer price = Variable cost + ( External selling price - variable cost )

Q: Hu Corporation has two operating divisions, A and B. The following information is provided for…

A: As division A on operating capacity, So division A loses its contribution margin. So the transfer…

Q: The Pole Division produces poles which can be sold to outside customers or transferred to the Flag…

A: Transfer price:   It is the price at which one branch sell goods to another branch. It is less than…

Q: The Can Division of Concord Corporation manufactures and sells tin cans externally for $ 0.70 per…

A: Formula: Minimum transfer price = Unit variable cost - Selling internally will save  cost

Q: Your Division makes a part that can either be sold to outside customers or transferred internally to…

A: As per the general transfer pricing rule, in the case of sufficient capacity available, the minimum…

Q: It costs Mills, Inc. $5 per unit to manufacture 1290 units per month of a product that it can sell…

A: Increment revenue arises when the product is processed further to earn additional revenue over the…

Q: A logistics firm, Apao Cargo, Inc., is currently manufacturing an item that has a variable cost of…

A: Here, Units before adding additional Equipment is 30,000 units Variable Cost before adding…

Q: The EKTA’s main competitor does not manufacture their bicycle frames. They purchase the frames from…

A: The manufacturing cost is the cost of converting raw material into finished goods. It includes the…

Q: The fastener division of Southern Fasteners manufactures zippers and then sells them to customers…

A: Solution: In case of spare capacity, minimum transfer price is the variable cost of making per unit…

Q: Your Division makes a part that can either be sold to outside customers or transferred internally to…

A: As per the general transfer pricing rule, in the case of sufficient capacity available, the minimum…

Q: company can buy the part from an outside supplier for​ $2 per unit and avoid​ 20% of the fixed…

A:

Q: Shocking Electronics uses a standard part to make different types of radios. The total cost to make…

A: Working note: Fixed cost incurred if parts outsource Total fixed cost = $40000 $40000*80%=  $32000

Q: Seved Spring Corp. has two divisions, Daffodil and Tulip. Daffodil produces a gadget that Tulip…

A: Note: As per general rule, in the case of sufficient capacity available, the minimum transfer price…

Q: Your Division makes a part that can either be sold to outside customers or transferred internally to…

A: As per the general transfer pricing rule, in the case of sufficient capacity available, the minimum…

Q: Hu Corporation has two operating divisions, A and B. The following information is provided for…

A: Note: As per general rule, in the case of sufficient capacity available, the minimum transfer price…

Q: Braizen, Inc. produces a product with a $30 per-unit variable cost and an $80 per-unit sales price.…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: The Wood Division of Swifty Corporation manufactures rubber moldings and sells them externally for…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Holmes Company produces a product that can be either sold as is or processed further. Holmes has…

A:

Q: Quest Motors, Inc., operates as a decentralized multidivision company. The Vivo division of Quest…

A: Transfer Price, when used internally, takes into the following consideration: 1. Incremental costs…

Q: Stan Fawcett’s company is considering producing agear assembly that it now purchases from Salt Lake…

A: Cost is the price paid for a particular product or service.

Q: Zang Co. has the option to either further process product Alpha to produce Product Zeta. The selling…

A: From the given data, Production cost of Product Alpha for each unit = $23 Production cost of Product…

Q: The Can Division of Marigold Corp. manufactures and sells tin cans externally for $0.60 per can. Its…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: The Windshield division of Fast Car Co. makes windshields for use in Fast Car’s Assembly division.…

A: Variable Cost = $ 240 per windshield Capacity = 630000 windshield Market price = $ 475 per…

Q: The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The…

A: Note: As per general rule, in the case of sufficient capacity available, the minimum transfer price…

Q: The Wood Division of Vaughn Manufacturing manufactures rubber moldings and sells them externally for…

A: Given, Variable cost is = $ 25 per unit Fixed cost is = $ 8 per unit Division to transfer = 4300…

Q: Currently, the unit selling price of a product is $1,500, the unit variable cost is $1,200, and the…

A: Break-even point(BEP):  It is a point where there would be no profit or no loss which means that the…

Q: Spark Ltd has two divisions, assembly and electrical. The assembly division transfers partially…

A: a. Compute the transfer price in case the assembly division has no spare capacity:

Q: The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division.…

A: Transfer pricing methodology is used for setting prices at which products can be transferred from…

Q: Raven, Inc. has a division that manufactures a component that sells for $185 and has a variable cost…

A: given that, selling price = $185 Variable cost = $50 Fixed cost per unit = $21

Q: The management of International Aluminium Co. is considering whether to process aluminum ingot…

A: Process Costing: It is the method in which the cost of a product is determined on the basis of the…

Q: he Wood Division of Sheridan Company manufactures rubber moldings and sells them externally for $55.…

A: Internal transfer means where one independent department is transferring the goods to another…

Q: QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues…

A: Businesses are always seeking for innovative ways to increase revenue. An rise in revenue without a…

Q: The clock division of Control Central Corporation manufactures clocks and then sells them to…

A: Transfer pricing can be defined as the setting of the price for goods and services sold between…

Q: Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total…

A: Fixed cost remain fixed whatever may be the level of output where as variable cost will vary with…

Q: use either of two processes.  One would entail a variable cost of P17 per unit and an annual fixed…

A: A B C D E F 1. Internal 1           2.  Fixed cost 200,000         3. Variable cost 17…

Q: Nelson Company's Radio Division currently is purchasing transistors from Charlotte Co. for $3.50…

A: Formula: Total cost = Variable cost + Fixed cost Sum of variable and fixed cost derives the total…

Q: Management of the Crane Company would like the Food Division to transfer 11000 cans of its final…

A: The minimum transfer price is equivalent to the marginal cost of manufacturing one product. The…

Q: The Windshield division of Fast Car Co. makes windshields for use in Fast Car’s Assembly division.…

A: Transfer price: It can be defined as a price at which products and services are transferred between…

Q: A Production Company can produce a product for $80 per unit. The investment per unit in equipment is…

A: Following is the answer to the given question

Q: McPupper Steel has products that cost $10,500 to manufacture. The products can be sold as is for…

A: Incremental profit is the profit or loss associated with the change in the decision. The positive…

Q: The Windshield division of Fast Car Co. makes windshields for use in Fast Car’s Assembly division.…

A: Transfer price: It can be defined as a price at which the goods and services are transferred between…

Q: Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed…

A: Break Even Sales = Fixed Cost/Contribution per unit

Q: Suppose that Division T can sell only 10,000 timers to outside customers. What is the lowest…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed…

A: At Break Even Point Profit and Loss will be Zero. Break Even Quantity = Fixed Cost/Contribution Per…

Q: The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The…

A: Note: As per general rule, in the case of sufficient capacity available, the minimum transfer price…

Q: Penn Company has a division that manufactures a component that sells for $50 and has variable costs…

A: Answer:   Minimum transfer price = Selling price to outsider = $50   Option d.

Q: Suppose that one of Willcom's sellers sells two types of projects with pricing as follows: Projector…

A: As per Bartleby policy, only 1 question will be solved.  The annual Total cost of inventory is the…

Q: nternally to the Western division of the same company. The quoted external price in industry…

A: The price at which the goods are transferred by one division/department to another…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.