Top Posters
Since Sunday
g
3
3
2
J
2
p
2
m
2
h
2
s
2
r
2
d
2
l
2
a
2
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
mhbtelc mhbtelc
wrote...
Go to Answer
Posts: 111
Rep: 0 0
A year ago
The Machining division makes a component part that the Assembly division needs for a new product. The Machining division's variable cost of manufacturing the component is $25 per unit. The component is also available on the open market at a price of $45 per unit. The Assembly division needs 900 units per year, and the Machining division has excess capacity of 1,000 units.

Required:

a.Determine the cost-based transfer price that the Machining division should charge the
Assembly division.
b.Determine the market-based transfer price that the Machining division should charge
the Assembly division.
c.What arguments will the Machining division's manager and the Assembly division's
manager make in an attempt to get the price each wants?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 87 times
1 Reply
Replies
Answer verified by a subject expert
SagxarSagxar
wrote...
#1
Posts: 113
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
This verified answer contains over 210 words.
1

Related Topics

mhbtelc Author
wrote...

A year ago
Helped a lot
TAT1238
wrote...

Yesterday
Brilliant ツ
deathDoUsPart
wrote...

2 hours ago
Smart ... Thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1046 People Browsing
 128 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 300
  
 284
  
 308
Your Opinion
Previous poll results: Which is the best fuel for late night cramming?