Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price eTextbook and Media $ 34 Minimum transfer price $ per unit Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.)

Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price eTextbook and Media $ 34 Minimum transfer price $ per unit Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Godo

Household Division of Novak then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell
any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.
Unit fixed cost
Unit variable cost
Unit selling price
$5
8
34
Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small
motor LN233 to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.)
Minimum transfer price
eTextbook and Media
$
34
Minimum transfer price $
per unit
Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of
the small motor to the Household Division. (Round answer to 2 decimal places, e.g. 10.50.)

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