In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division

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In Each Of The Cases Below Assume Division X Has A Product That Can Be Sold Either To Outside Customers Or To Division 1 (43.85 KiB) Viewed 55 times

In Each Of The Cases Below Assume Division X Has A Product That Can Be Sold Either To Outside Customers Or To Division 2 (52.93 KiB) Viewed 55 times

In Each Of The Cases Below Assume Division X Has A Product That Can Be Sold Either To Outside Customers Or To Division 3 (43.09 KiB) Viewed 55 times

In Each Of The Cases Below Assume Division X Has A Product That Can Be Sold Either To Outside Customers Or To Division 4 (90.28 KiB) Viewed 55 times

In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits Case А 8 Division X: Capacity in units Number of units being sold to outside customers Selling price per unit to outside customers Variable costs per unit Fixed costs per unit (based on capacity) Division Y: Number of units needed for production Purchase price per unit now being paid to an outside supplier 103,000 103,000 $ 53 $ 23 $ 7 95,000 79,000 $ 27 $ 13 $ 5 16,000 16,000 $ 48 $ 26 Exercise 11-13 (Algo) Part 2 Required: 2. Refer to the data in case B above. In this case, there will be no savings in variable selling costs on intracompany sales, a. What is the lowest acceptable transfer price from the perspective of the selling division? bWhat is the highest acceptable transfer price from the perspective of the buying division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If the managers are free to negotiate and make decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Reg 20 What is the lowest acceptable transfer price from the perspective of the selling division?
Exercise 11-13 (Algo) Part 2 Required: 2. Refer to the data in case B above. In this case, there will be nos a. What is the lowest acceptable transfer price from the perspectiv b. What is the highest acceptable transfer price from the perspecti c. What is the range of acceptable transfer prices (if any) between t decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs Req 2A Req 2B Req 2c What is the lowest acceptable transfer price from the perspective of ti Lowest acceptable transfer price Red 2A < Prev
Number of units needed for production Purchase price per unit now being paid to an outside supplier Exercise 11-13 (Algo) Part 2 Required: 2. Refer to the data in case B above. In this case, there will be no saving a. What is the lowest acceptable transfer price from the perspective of th b. What is the highest acceptable transfer price from the perspective oft c. What is the range of acceptable transfer prices (if any) between the tw decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below Reg 2A Reg RB Req 20 What is the highest acceptable transfer price from the perspective of the bus Highest acceptable transfer price < Reg 2A Reg 2 < Prev 21
Required: 2. Refer to the data in case B above. In this case, there will be no savings in a. What is the lowest acceptable transfer price from the perspective of the s b. What is the highest acceptable transfer price from the perspective of the c. What is the range of acceptable transfer prices (if any) between the two d decisions on their own, will a transfer probably take place? Complete this question by entering your answers in the tabs below. Req 2A Reg 2B Req 20 What is the range of acceptable transfer prices (if any) between the two division make decisions on their own, will a transfer probably take place? Identify the range of acceptable transfer prices (if any): There is not a range of acceptable transfer prices. There is a range of acceptable transfer prices as shown below: Transfer price Are the managers likely to agree on a transfer price? OYes s s NO < Req 2B (20920