As the department is operating at full capacity Minimum transfer price = Variable cost+ Opportunity cost = 26 + (46-26) = 26 + 20 = 46 |
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The Heating Division of Kobe International produces a heating element that it sells to its customers...
The Heating Division of Kobe International produces a heating element that it sells to its customers for $46 per unit. Its variable cost per unit is $29, and its fixed cost per unit is $5. Top management of Kobe International would like the Heating Division to transfer 14,800 heating units to another division within the company at a price of $32. The Heating Division is operating at full capacity. Assume that the units being requested are special high-performance units and...
The Heating Division of Kobe International produces a heating element that it sells to its customers for $38 per unit. Its variable cost per unit is $23, and its fixed cost per unit is $8. Top management of Kobe International would like the Heating Division to transfer 15,400 heating units to another division within the company at a price of $31. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should...
The Heating Division of Kobe International produces a heating element that it sells to its customers for $45 per unit. Its variable cost per unit is $30, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 14,900 heating units to another division within the company at a price of $33. Assume that the Heating Division has sufficient excess capacity to provide the 14.900 heating units to the other division....
The Heating Division of Kobe International produces a heating element that it sells to its customers for $47 per unit. Its variable cost per unit is $30, and its fixed cost per unit is $8. Top management of Kobe International would like the Heating Division to transfer 14,700 heating units to another division within the company at a price of $35. The Heating Division is operating at full capacity. Assume that the units being requested are special high-performance units and...
The Heating Division of Kobe International produces a heating element that it sells to its customers for $45 per unit. Its variable cost per unit is $22, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 15,200 heating units to another division within the company at a price of $34. Assume that the Heating Division has sufficient excess capacity to provide the 15,200 heating units to the other division. What is the minimum transfer...
Brief Exercise 8-7 x Your answer is incorrect. Try again. The Heating Division of Kobe International produces a heating element that it sells to its customers for $44 per unit. Its variable cost per unit is $30, and its fixed cost per unit is $10. Top management of Kobe International would like the Heating Division to transfer 15,500 heating units to another division within the company at a price of $31. The Heating Division is operating at full capacity. What...
Brief Exercise 21-03 x Your answer is incorrect. Try again. The Heating Division of Kobe International produces a heating element that it sells to its customers for $46 per unit. Its variable cost per unit is $22, and its fixed cost per unit is $10. Top management of Kobe International would like the Heating Division to transfer 14,800 heating units to another division within the company at a price of $27. Assume that the Heating Division has sufficient excess capacity...
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Brief Exercise 8-7 The Heating Division of Kobe International produces a heating element that it sells to its customers for $39 per unit. Its variable cost per unit is $22, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 15,200 heating units to another division within the company at a price of $29. The Heating Division is operating at full capacity. What...
BE21.2 (LO 2) Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $12, direct labor $8, variable manufacturing overhead $6, fixed manufactur- ing overhead $14, variable selling and administrative expenses $4, and fixed selling and administrative expenses $12. Using a 30% markup percentage on total per unit cost, compute the target selling price. BE21.4 (LO 2) Morales Corporation produces microwave ovens. The following per unit cost informa- tion is available: direct materials $36, direct labor...
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...