Monty Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Monty 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 (a) 54 12 33 Your answer is correct 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, eg 10.50) Minimum transfer price $ 12 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, eg. 10.50.)

Monty Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Monty 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 (a) 54 12 33 Your answer is correct 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, eg 10.50) Minimum transfer price $ 12 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, eg. 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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