5 Colyer Products Inc. has a Valve Division that manufactures and sells a standard valve as follows: Capacity in units S

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5 Colyer Products Inc Has A Valve Division That Manufactures And Sells A Standard Valve As Follows Capacity In Units S 1 (44.23 KiB) Viewed 77 times

5 Colyer Products Inc Has A Valve Division That Manufactures And Sells A Standard Valve As Follows Capacity In Units S 2 (43.99 KiB) Viewed 77 times

5 Colyer Products Inc. has a Valve Division that manufactures and sells a standard valve as follows: Capacity in units Selling price to outside custoners on the internediate market Variable costs per unit Fixed costs per unit (based on capacity) 10,000 15 8 5 15 points Skoot The company has a Pump Division that could use this valve in the manufacture of one of its pumos. The Pump Division is currently purchasing 10,000 valves per year from an overseas supplier at a cost of $14 per valve Required: 1. Assume that the Valve Dision hos ample idle capacity to handle all of the Pump Division's needs. What is the acceptable range, it any, for the transfer price between the two divisions? Transfer price 2. Assume that the Valve Division selling all that it can produce to outside customers on the intermediate market. What is the acceptable range. If any, for the transfer price between the two divisions? Transfer price 3. Assume again that the Valve Division is selling of that it can produce to outside customers on the intermediate market. Also assume thot S2 in variable expenses can be avoided on transfers within the company, due to reduced seling costs. What is the acceptable range, if any, for the transfer price between the two divisions? Trance
2. Assume that the Valve Division is selling all that it can produce to outside customers on the Intermediate market. What is the acceptable range, if any, for the transfer price between the two divisions? 5 Transfer price 15 pos Swispeo book 3. Assume again that the Valve Division is selling all that it can produce to outside customers on the Intermediate market. Also assume that $2 in variable expenses can be avoided on transfers within the company, due to reduced selling costs. What is the acceptablo range, Wany, for the transfer price between the two Misions? (14 spa 4. Assume the Pump Division needs 20,000 special high pressure valves per year, The Valve Division's variable costs to manufacture and ship the special valve would be $10 per unit to produce these special valves, the Valve Division would have to reduce its production and sales of regular valves from 100.000 units per year to 70,000 units per year. As far as the Valve Division is concerned, what is the lowest acceptable transfer price (Round your answer to 2 decimal places.) Transfer pince