a) Lowest price = variable cost per unit = 1.50 per unit
b) Highest price = Selling price per unit = 4.95 per unit
Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West...
Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $3.00 per unit; full cost is $4.00. The component sells on the open market for $7.00. What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer price
Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $4.00 per unit, full cost is $5.00. The component sells on the open marke for $9.00 What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer price
Medlock Company has two divisions, Wheel and Chassis. The Wheel Dvision manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $7.00 per unit; full cost is $8.00. The component sells on the open market for $15.00 What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer price
Medlock Company has two divisions, Wheel and Chassis. The Wheel Dvision manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $3.00 per unit; full cost is $4.00. The component sells on the open market for $7.00 What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer price
Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year just ended is as follows: West 45,eee le East 34,00 Units produced and sold Selling price per unit Variable costs per unit Direct fixed cost Common fixed cost 63,000 55, 125,000 5 5,889 Common foxed expenses have been allocated equally to each of the two divisions. Carter's segment margin for the West Division is: 0 0 0 0
Graham Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tire Division. The Tractor Division can use the tires produced by the Tire Division. The market price per tire is $60. Direct material cost per tire $29 Conversion costs per tire $4 (Assume the $4 includes only the variable portion of conversioncosts.) Fixed manufacturing overhead cost for the year is expected to total $114,000. The Tire Division expects to manufacture 57,000 tires this year. The fixed...
Shaw is a lumber company that also manufactures custom cabinetry. It is made up of two divisions: Lumber and Cabinetry. The Lumber Division is responsible for harvesting and preparing lumber for use; the Cabinetry Division produces custom-ordered cabinetry. The lumber produced by the Lumber Division has a variable cost of $3.90 per linear foot and full cost of $4.90. Comparable quality wood sells on the open market for $11.70 per linear foot. Required: 1. Assume you are the manager of...
Question 29 Arian International Corporation has two divisions, Division A and Division B. Division A produces a motor that sells for $87 per unit, with the following costs based on its capacity of 185,000 units: Direct materials Direct labour Variable overhead Fixed overhead $32 26 10 Division A is operating at 70% of normal capacity and Division B is purchasing 20,000 units of the same component from an outside supplier for $81 per unit. Calculate the benefit, if any, to...
Wollan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $44 per shipment. The Logistics Department's fixed costs are budgeted at $391,700 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. Percentage of Peak- period Capacity Required 45% 55% Budgeted Shipments 1,730 5,630 East Division West Division At the end of the year, actual...
Wollan Corporation has two operating divisions—an East Division and a West Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $26 per shipment. The Logistics Department's fixed costs are budgeted at $361,600 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. Percentage of Peak-period Capacity Required Budgeted Shipments East Division 40% 2,250 West Division 60% 5,040 At the end of the year, actual Logistics...