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Modules WP Grades Question 12 --/25 Wiley Accounting Weekly Updates View Policies Current Attempt in Progress Account DiscussWP Minimum transfer price $ Personal Communications Division should the offer. Account Dashboard (b) The Personal Communicati

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Answer #1
A)
SELLING PRICE PER PAGER $           101
VARIABLE COST PER PAGER $              53
CONTRIBUTION PER PAGER $              48
NUMBER OF PAGERS FORGONE            8,400
CONTRIBUTION FORGONE IN $ $   403,200
NUMBER OF SPECIAL PAGERS TO BE PRODUCED          10,500
CONTRIBUTION FORGONE PER SPECIAL PAGER $              38
TOTAL COST PER SPECIAL PAGER
VARIABLE COST PER PAGER $              53
ADDITIONAL VARIABLE COST PER SPECIAL PAGER $              30
CONTRIBUTION FORGONE PER SPECIAL PAGER $              38
MINIMUM TRANSFER PRICE $           121
PRICE OFFERED BY PC DIVISION $           111
OFFER SHOULD NOT BE ACCEPTED
B)
SELLING PRICE PER PAGER $           101
VARIABLE COST PER PAGER $              53
CONTRIBUTION PER PAGER $              48
NUMBER OF PAGERS FORGONE          14,000
CONTRIBUTION FORGONE IN $ $   672,000
NUMBER OF SPECIAL PAGERS TO BE PRODUCED          10,500
CONTRIBUTION FORGONE PER SPECIAL PAGER $              64
TOTAL COST PER SPECIAL PAGER
VARIABLE COST PER PAGER $              53
ADDITIONAL VARIABLE COST PER SPECIAL PAGER $              30
CONTRIBUTION FORGONE PER SPECIAL PAGER $              64
MINIMUM TRANSFER PRICE $           147
PRICE OFFERED BY PC DIVISION $           150
OFFER SHOULD BE ACCEPTED
C)
SELLING PRICE PER PAGER $          101
VARIABLE COST PER PAGER $            53
CONTRIBUTION PER PAGER $            48
NUMBER OF PAGERS FORGONE                  -  
CONTRIBUTION FORGONE IN $ $             -  
NUMBER OF SPECIAL PAGERS TO BE PRODUCED        10,500
CONTRIBUTION FORGONE PER SPECIAL PAGER $             -  
TOTAL COST PER SPECIAL PAGER
VARIABLE COST PER PAGER $            53
ADDITIONAL VARIABLE COST PER SPECIAL PAGER $            30
CONTRIBUTION FORGONE PER SPECIAL PAGER $             -  
MINIMUM TRANSFER PRICE $            83
PRICE OFFERED BY PC DIVISION $          106
OFFER SHOULD BE ACCEPTED
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