Sunland is a textbook publishing company that has contracts with a number of different authors. It also operates a printing operation called Carla Vista. Both companies operate as separate profit centers. Carla Vista prints textbooks written by Sunland authors as we as books written by non-Sunland authors. The printing operation bills out at $0.08 per page and a typical textbook requires 564 pag of print. A developmental editor from Sunland approached the printing operation manager offering to pay $0.045 per page for 4,700 copies of a 564-page textbook. Outside printers are currently charging $0.05 per page. Carla Vista's variable cost per page is $0.04. (a1) Calculate the appropriate transfer price if Carla Vista has available capacity. (Round answer to 2 decimal places, e.g. 52.75.) Transfer price $ Indicate whether the printing should be done internally by Carla Vista for the above situation.

Sunland is a textbook publishing company that has contracts with a number of different authors. It also operates a printing operation called Carla Vista. Both companies operate as separate profit centers. Carla Vista prints textbooks written by Sunland authors as we as books written by non-Sunland authors. The printing operation bills out at $0.08 per page and a typical textbook requires 564 pag of print. A developmental editor from Sunland approached the printing operation manager offering to pay $0.045 per page for 4,700 copies of a 564-page textbook. Outside printers are currently charging $0.05 per page. Carla Vista's variable cost per page is $0.04. (a1) Calculate the appropriate transfer price if Carla Vista has available capacity. (Round answer to 2 decimal places, e.g. 52.75.) Transfer price $ Indicate whether the printing should be done internally by Carla Vista for the above situation.

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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