COST ACCT-W/ACCESS >C< NON-MAJORS
COST ACCT-W/ACCESS >C< NON-MAJORS
15th Edition
ISBN: 9781269768191
Author: Horngren
Publisher: PEARSON C
Question
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Chapter 22, Problem 22.35P

1.

To determine

The additional level of promotional expense chosen by the H division manager.

2.

To determine

The level of additional promotional expense that as a manager would you like that the division manager should select.

Given information:

The number of units that the C division industries supplies to the H division is 100,000.

The contribution per unit is $3.20 ($8$4.80)

Calculation of the total contribution:

C.

To determine

The level of spending which the President would like to be selected by the division manager.

D.

To determine

The maximum transfer price that would induce the H division to spend the optimal additional promotional expense from the standpoint of whole firm.

Given information:

The current transfer price is $8.

The incremental units are 3,000.

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