
1.
The additional level of promotional expense chosen by the H division manager.
2.
The level of additional promotional expense that as a manager would you like that the division manager should select.
Given information:
The number of units that the C division industries supplies to the H division is 100,000.
The contribution per unit is $3.20
Calculation of the total contribution:
C.
The level of spending which the President would like to be selected by the division manager.
D.
The maximum transfer price that would induce the H division to spend the optimal additional promotional expense from the standpoint of whole firm.
Given information:
The current transfer price is $8.
The incremental units are 3,000.

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Chapter 22 Solutions
Cost Accounting, Student Value Edition (15th Edition)
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