Top Posters
Since Sunday
5
k
4
c
4
M
3
t
3
i
3
B
3
k
3
m
3
c
3
o
3
l
3
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
dxpayne dxpayne
wrote...
Go to Answer
Posts: 930
Rep: 1 0
6 years ago
Mar Company has two decentralized divisions, X and Y. Division X has been purchasing certain component parts from Division Y at $75 per unit. Because Division Y plans to raise the price to $100 per unit, Division X desires to purchase these parts from external suppliers for $75 per unit. The following information is available:

Division Y variable cost per unit   $70
Division Y annual fixed costs   $15,000
Division Y annual production
of parts for Division X   1,000 units

If Division X buys from an external supplier, the facilities Division Y uses to manufacture these parts will be idle. Assuming Division Y's fixed costs cannot be avoided, what is the result if Mar requires Division X to buy from Division Y at a transfer price of $100 per unit?
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
Read 86 times
1 Reply
Replies
Answer verified by a subject expert
GarretAGarretA
wrote...
#1
Top Poster
Posts: 669
Rep: 22 0
6 years 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 160 words.
1
Without mathematics, there's nothing you can do. Everything around you is mathematics. Everything around you is numbers.

Related Topics

dxpayne Author
wrote...

6 years ago
Smart ... Thanks!
shelbycox
wrote...

Yesterday
Brilliant ツ
loki1345
wrote...

2 hours ago
This calls for a celebration Person Raising Both Hands in Celebration
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  744 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 499
  
 2773
  
 5615
Your Opinion
What percentage of nature vs. nurture dictates human intelligence?
Votes: 432
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?