Answer : Transfer price per windshield = $475
Explanation: Since Windshield division already operating at full capacity with no excess capacity . Thus in order to transfer windshields to Assembly division it will have to forgo its outside customers. Therefore Windshield division will be ready to transfer windshields to Assembly division at a transfer price equal to the market price per windshield ie $475
The Windshield division of Fast Car Co. makes windshields for use in Fast Car's Assembly division....
The Windshield division Fast Car Co. makes windshields for use in Fast Car's Assembly division. The Windshield division incurs variable costs of $280 per windshield and has capacity to make 600,000 windshields per year. The market price is $570 per windshield. The Windshield division incurs total fixed costs of $3,050,000 per year. Assume the Windshield division is operating at full capacity, what transfer price should be used on transfers between the Windshield and Assembly divisions? ok Transfer price per windshield...
The Windshield division of Fast Car Co. makes windshields for use in Fast Car's Assembly division. The Windshield division incurs variable costs of $272 per wirdshield and has capacity to make 600,000 windshields per year. The market price is $570 per windshield. The Windshield division incurs total fixed costs of $4,000,000 per year. Assume the Windshield division has excess capacity, what is the range of possible transfer prices that could be used on transfers between the Windshield and Assembly divisions?...
QS 9-178 Determining transfer prices without excess capacity LO C2 The Windshield division of Fast Car Co. makes windshields for use in Fast Car's Assembly division. The Windshield division incurs variable costs of $220 per windshield and has capacity to make 550,000 windshields per year. The market price is $485 per windshield. The Windshield division incurs total fixed costs of $3,750,000 per year Assume the Windshield division is operating at full capacity, what transfer price should be used on transfers...
QS 22-17B Determining transfer prices without excess capacity LO C2 The Windshield division of Fast Car Co. makes windshields for use in Fast Car's Assembly division. The Windshield division incurs variable costs of $284 per windshield and has capacity to make 660,000 windshields per year. The market price is $555 per windshield. The Windshield division incurs total fixed costs of $3,100,000 per year. Assume the Windshield division is operating at full capacity, what transfer price should be used on transfers...
Qs 22-17B Determining transfer prices without excess capacity LO C2 The Windshleld divislon of Fast Car Co. makes windshlelds for use In Fast Car's Assembly division. The Windshleld division Incurs varlable costs of $264 per windshleld and has capacity to make 530,000 windshlelds per year. The market price is $520 per windshleld. The Windshield divislon Incurs total fixed costs of $3,350.000 per year Assume the Windshleld divislon Is operating at full capacity, what transfer price should be used on transfers...
The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $102 each. Each trailer incurs $47 of variable manufacturing costs. The Trailer division has capacity for 29,000 trailers per year and incurs fixed costs of $440,000 per year. Required: 1.Assume the Assembly division of Baxter Bicycles wants to buy 5,300 trailers per year from the Trailer division. If the Trailer division can sell all...
The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $93 each. Each trailer incurs $40 of variable manufacturing costs. The trailer division has capacity for 25,000 trailers per year and incurs fixed costs of $550,000 per year. Required: 1. Assume the assembly division of Baxter Bicycles wants to buy 5,400 trailers per year from the trailer division. If the trailer division can sell...
Exercise 9-20B Determining transfer prices LO C2 The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $92 each. Each trailer incurs $42 of variable manufacturing costs. The trailer division has capacity for 28,000 trailers per year and incurs fixed costs of $550,000 per year Required: 1. Assume the assembly division of Baxter Bicycles wants to buy 5,100 trailers per year from the trailer...
The Fabricating division makes a component part that the Assembly division needs for a new product. The Fabricating division’s variable cost of manufacturing the component is $28 per unit. The component is also available on the open market at a price of $50 per unit. The Assembly division needs 936 units per year, and the Fabricating division has excess capacity of 1,200 units. (a) Calculate the cost-based transfer price that the Fabricating division should charge the Assembly division. Cost based...
Check my work Exercise 22-20B Determining transfer prices LO C2 points The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $108 each. Each trailer incurs $39 of variable manufacturing costs. The Trailer division has capacity for 26,000 trailers per year and incurs fixed costs of $530,000 per year. eBook Hint Required: 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,400...