Check mA division can sell externally for $73 per unit. Its variable manufacturing costs are $42 per unit, and its variable marketing costs are $20 per unit. What is the optimaltransfer price for transferring internally, assuming the division is operating at capacity?to searchMultiple ChoiceO$20$42$62$73IHi< PrevPS4 of 25ONext >37°F Cloudy^4

Transfer price means the price charged by one department from other department of the same company…

Answered: A division can sell externally for $73…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

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packman company has a division that manufactures a component that sells for $72 and has variable costs of $29 and fixed costs of $18. another division wants to purchase the component. what is the minimum transfer price if the division is operating at capacity? a. $72 b. $29 c. $47 d. $18
Use the following information for the next 2 questions (8 & 9). Division X produces and sells a product to external and internal customers. Per-unit information about its operations include: Selling price per unit to external customers $250 Variable manufacturing costs per unit 115 Fixed manufacturing overhead costs per unit 70 8. If X is operating at capacity and has unlimited external customer demand, what should be the minimum transfer price? 9. If X has sufficient excess capacity to meet internal demand, what should be the minimum transfer price?
TB MC Qu. 15-29 (Algo) Division B has varlable manufacturing... Division B has variable manufacturing costs of $59 per unit and fixed costs of $15 per unit. Assuming that Division B is operating significantly below capacity, what is the opportunity cost of an internal transfer when the market price is $84?
ageNOWv2 | Online teachin X + m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A F Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $610,000. and fixed costs are $191,000. How much will income from operations change if sales increase by $48,900? Oa. $13,692 decrease Ob. $13,692 increase Oc. $35,208 decrease. Od. $35,208 increase D Q 10+
Division A of Huskie, Inc. has operating data as follows: Capacity Selling price Variable costs Fixed costs A. B. Division B wants to purchase units from Division A. If Division A agrees to sell units to Division B, A's variable costs will be $5 less per unit. C. If Division A has capacity available to meet B's requirements, what is the minimum price it should charge? $40 $30 20,000 units $75 $80 per unit D. $60 $35 per unit $20 per unit
Sandpiper Inc. has a division that manufactures a component that sells for $165 and has a variable cost of $45. Another division of the company wants to purchase the component Fixed cost per unit of the component is $20. What is the minimum transfer price if the division is operating at capacity? OA. $165 OB. $45 OC. $20 OD. $65
H
Paty Ltd operating business of shipping it is contemplating two cost structures for its operations. A. The plan has high variable cost pu shipped with lower annual fixed costsB. The plan has lower variable cost with higher fixed cost.Details of Cost:Plan A:Per shipment revenue=100Variable cost per shipment delivered=85Contribution=15Annual fixed cost=1,200,000Plan B:Per shipment revenue=100Variable cost per shipment delivered=60Contribution=40Annual fixed cost=4,500,000Required:1.BEP (In volumes) for both the plans2.Under plan A to produce an operating income of 30,000, how many shipments to be made.3. Shipments to be made under plan A to produce an operating margin which is equal to 9% of sales revenue in total.
QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below: Projected revenue Unit-level costs Batch-level costs Product-level costs Facility-level costs What is the differential revenue for this decision? Multiple Choice O $110.000 $85,000 $205,000 Alternative A $205,000 39,000 26,500 29,000 24,000 $290,000 Alternative B $290,000 50,000 38,000 31,000 26,500
geNOWv2 | Online teachin X + m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A + If fixed costs are $295,000, the unit selling price is $30, and the unit variable costs are $21, what is the break-even point in sales units it fixed costs are reduced by $41,500? Oa. 28,167 units Ob. 33,800 units Oc. 42,250 units Od. 22,533 units 8:2 9 ▬▬ ▬ 6 8 O D 5/2
REQUIRED: How much is the controllable margin of A1 for purposes of evaluating the segment manager's performance?
Please answer quicklyX product; total sales quantity is 25, unit sales price is 1600 TL, unit variable expense is 1000 TL. (Total fixed expenses 120.000TL)What is the 'break-even point' of X according to uniform production? 2310143019

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A division can sell externally for $73 per unit. Its variable manufacturing costs are $42 per unit, and its variable marketing costs are $20 per unit. What is the optimal transfer price for transferring internally, assuming the division is operating at capacity? Multiple Choice $20 $42 $62 $73