WebSecond - You need a good intuitive understanding of marginal cost and opportunity cost else step 1 above isn't going to work. Third - Understand that minimum and maximum are different perspectives - namely producer and buyer respectively. Elaborating on point 3 - the producer will not accept a selling price below what makes sense for him to ... Web2 The lowest acceptable transfer price from the respective of selling di vision: assume the selling division sells 22,500 speakers answer: Transfer > V ruiable cost + Total contribution n_wgin on lo,t sale; p1icc - per unit Number of un11s 1ransterred Because there is only enough idle capacity (25,000 - 22,500) to fill 2,500 units from the Hi-fl ision's ord er, 2, …
Quiz 7: Transfer Pricing Quiz+
WebAccording to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division? A. $47.00 per unit B. $43.50 per unit C. $37.50 per unit D. $34.73 per unit Division T of Clocker Company makes a timer which it sells for $30 to outside customers. WebThe highest acceptable transfer price is the market price of $2,500. The lowest acceptable transfer price if the part was produced by the internal operations division at Manufacturing World is $1,210. The other answers are not correct. The lowest acceptable transfer price = $900 + $150 + $160 = $1,210 Common fixed expenses hideout\u0027s az
Transfer pricing problems and answers - TRANSFER PRICING
WebThe lowest acceptable transfer price from the perspective of the selling division is given by the following formula: There is no idle capacity, so each of the 20,000 units … Web6 mrt. 2024 · Boxing and shipping costs for the new special casting would be only $1 per unit, thereby saving the company $5 per unit in cost. The company is now producing and … WebThe managerial accountant reported the following manufacturing costs and variable expense. If the highest acceptable transfer price is $600 in the market, what is the lowest acceptable in-house price the Data Department should receive to produce the part-in-house at the Computer Department? $1,070 hideout\u0027s b1