Homework Answers
1. Transfer price per trailer = Retail price = $93 each.
2. As there is excess capacity, the range of transfer price is between the variable cost and the retail price.
Transfer price per trailer will be at least $40 but not more than $93.
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The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry...
The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry...
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...
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...
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...
Ch The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can...
Ch The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The tralers have a retail price of $106 each. Each trailer incurs $48 of variable manufacturing costs. The traller division has capacity for 29,000 trallers per year and incurs fixed costs of $550,000 per year Requi 1. Assume the assembly division of Baxter Bicycles wants to buy 5 ,600 trailers per year from the traller division. Ir the trailer division...
Check my work Exercise 22-20B Determining transfer prices LO C2 points The Trailer division of Baxter...
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...
The Windshield division of Fast Car Co. makes windshields for use in Fast Car's Assembly division....
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 710,000 windshields per year. The market price is $475 per windshield. The Windshield division incurs total fixed costs of $3,500,000 per year. If the Windshield division is operating at full capacity, what transfer price should be used on transfers between the Windshield and Assembly divisions? Transfer price per windshield
The Windshield division Fast Car Co. makes windshields for use in Fast Car's Assembly division. The...
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 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...
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...
ABC Cycle makes bicycles for people of all ages. The frames division makes and paints the...
ABC Cycle makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. ABC Cycle is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames...
QS 22-17B Determining transfer prices without excess capacity LO C2 The Windshield division of Fast Car...
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...
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...
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...
Ch The trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The tralers have a retail price of $106 each. Each trailer incurs $48 of variable manufacturing costs. The traller division has capacity for 29,000 trallers per year and incurs fixed costs of $550,000 per year Requi 1. Assume the assembly division of Baxter Bicycles wants to buy 5 ,600 trailers per year from the traller division. Ir the trailer division...
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...
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 710,000 windshields per year. The market price is $475 per windshield. The Windshield division incurs total fixed costs of $3,500,000 per year. If the Windshield division is operating at full capacity, what transfer price should be used on transfers between the Windshield and Assembly divisions? Transfer price per windshield
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...
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