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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 well
as books written by non-Sunland authors. The printing operation bills out at $0.08 per page and a typical textbook requires 564 pages
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6bc38b08-9d11-4b37-926c-0fb6cf1edfe1%2F78ef6e72-69d6-4a98-a899-1aa8b8d52d28%2F4zbx8nt_processed.png&w=3840&q=75)
Transcribed Image Text: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 well
as books written by non-Sunland authors. The printing operation bills out at $0.08 per page and a typical textbook requires 564 pages
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.
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