Shalom Department makes a part that it sells to customers outside of the company. Data concerning this partappear below:Selling price to outsidersVariable cost per unitAmounts must be in whole numbers. Example: 88,000 or (88,000)Unit costs be in whole numbers. Example: 88Total fixed costsCapacity in unitsPeace Department of the same company would like to use the part manufactured by Shalom Department in oneof its products. Peace Department currently purchases a similar part made by an outside company for P70 perunit and would substitute the part made by Shalom Department. Peace Department requires 5,000 units of thepart each period. If Shalom Department has excess capacity of 2,000 units, provide answers to the questions.Format of percentages: 88%Words must be in capital letters.What is the transfer price range?

To determine an acceptable price range for both departments, we need to consider the relevant costs…

Answered: lom Department makes a part that it…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 5EA: Assume you are the department B manager for Marleys Manufacturing. Marleys operates under a...

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Shalom Department makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outsiders Variable cost per unit Total fixed costs Capacity in units Peace Department of the same company would like to use the part manufactured by Shalom Department in one of its products. Peace Department currently purchases a similar part made by an outside company for P70 per unit and would substitute the part made by Shalom Department. Peace Department requires 5,000 units of the part each period. Shalom Department has ample excess capacity to handle all of Peace Department's needs without any increase in fixed costs and without cutting into outside sales of the part. What is the lowest acceptable transfer price from the standpoint of the selling division? 75 55 400,000 25,000
Subject: acounting
PEACE SHALOM Shalom Department makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outsiders Variable cost per unit Total fixed costs Capacity in units Peace Department of the same company would like to use the part manufactured by Shalom Department in one of its products. Peace Department currently purchases a similar part made by an outside company for P70 per unit and would substitute the part made by Shalom Department. Peace Department requires 5,000 units of the part each period. If Shalom Department has excess capacity of 2,000 units, provide answers to the questions. Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. 75 55 400,000 25,000 What department will set the lower limit? What department will set the higher limit?
Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers Variable cost per unit Total fixed costs Capacity in (units) Division B of the same company would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made by an outside company for $74 per unit and would substitute the part made by Division A. Division B requires 5,200 units of the part each period. Division A can already sell all of the units it can produce on the outside market. What should be the lowest acceptable transfer price from the perspective of Division A? e to search Multiple Choice $71 $77 4 $ 77 $ 55 $ 432,000 27,000 O Ai 21. 37°F Cloudy ^4.
please put a solution thanks
I just need requirement 5 for the transfer price please.
Product Cost Concept of Product Costing MyPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,060 cellular phones are as follows: Please help with problem C and d and show calculation
YES NO Shalom Department makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outsiders Variable cost per unit Total fixed costs Capacity in units Peace Department of the same company would like to use the part manufactured by Shalom Department in one of its products. Peace Department currently purchases a similar part made by an outside company for P70 per unit and would substitute the part made by Shalom Department. Peace Department requires 5,000 units of the part each period. If Shalom Department has excess capacity of 2,000 units, provide answers to the questions. Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. 75 55 400,000 25,000 Will there be an acceptable price range for both departments? If the selling department sets the price for the buying department at P71 per unit, will the buying…
need answer with working for both parts in detail answer in text
ractor Division makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers $ 38 Variable cost per unit $ 26 Total fixed costs $ 402,000 Capacity in units 30,500 Assembly Division of the same company would like to use the part manufactured by Tractor Division in one of its products. Assembly Division currently purchases a similar part made by an outside company for $37 per unit and would substitute the part made by Tractor Division. Assembly Division requires 5,020 units of the part each period. Tractor Division has ample excess capacity to handle all of Assembly Division’s needs without any increase in fixed costs and without cutting into outside sales. What is the lowest acceptable transfer price from the standpoint of the selling division? Multiple Choice $34 $38 $26 $37
A business makes two components which it uses to produce one of its products. Details are: Component A Component B Per unit information: S S Buy in price 14 17 Material 2 5 Labour 4 6 Variable overheads 6 7 General fixed overheads 4 3 Total absorption cost 16 21 The business wishes to maximise contribution and is considering whether to continue making the components internally or buy in from outside. Which components should the company buy in from outside in order to maximise its contribution? A. A only B. B only C. Both A and B D. Neither A nor B
Diff Analysis & Product Pricing:

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