Please answer No. 1 to 3Provide a complete solution. Thank You! tihe Lyn Division sells to the Mel Division, PO.40 per board foot can be saved in shipping costs.1 If current outside sales are 50,000 board feet, what is the minimum transfer price that theLyn Division could accept?2. If current outside sales are 70,000 board feet, what is the minimum transfer price that theLyn Division could accept?3. If Lyn Division has sufficient excess capacity to fulfill the Mel Division's needs, what will bethe effect on the company's overall contribution margin?4. If Lyn Division has sufficient excess capacity to fulfill the Mel Division's needs, what will bethe effect on the company's overall contribution margin if the transfer price negotiated isP2.40?5. If Lyn Division has sufficient excess capacity to fulfill the Mel Division's needs, what will bethe effect on the profit of Mel Division if the transfer price negotiated is P2.40?6. If Lyn Division has sufficient excess capacity to fulfill the Mel Division's needs, what will bethe effect on the profit of the company as a whole if the transfer price of P2.40 is change toP2.70?7. If Lyn Division is operating at capacity, what is the effect on the company's overallcontribution margin?moni 10.10The Lyn Division of Rosal Homes Inc. produces and sells lumber thatoutside customers or within the company to the Mel Division. The following data have beetgathered for the coming period:can be sold toLyn Division:CapacityPrice perVariable production cost per board footVariable selling cost per board footMel Division:Board feet needed100,000 board feetboard footP4.00P2.00PO.7040,000P3.50Outside price paid per board footer board foot can be saved in shipping costs.

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The Lyn Division of Rosal Homes Inc produces and sells lumber that can be soie to gathered for the coming period: Lyn Division: Capacity Price board foot 100,000 board feet P4.00 per Variable production cost per board foot Variable selling cost per board foot Mel Division: Board feet needed P2.00 PO.70 40,000 P3.50 Outside price paid per board foot

The Lyn Division of Rosal Homes Inc produces and sells lumber that can be soie to gathered for the coming period: Lyn Division: Capacity Price board foot 100,000 board feet P4.00 per Variable production cost per board foot Variable selling cost per board foot Mel Division: Board feet needed P2.00 PO.70 40,000 P3.50 Outside price paid per board foot

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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