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capacity variable cost of windshield: variable cost of car Bilbo Sells cars to the following: The Shire Autoplex Froto Windshield Division Prancing Pony Autos Cars of Rivendale Situation 1: Situation 2: Situation 3: 80,000 windshields $400 20,000 cars at $14,000 each 20,000 cars at $13,000 each 10,000 cars at $12,600 each Bilbo Car Company 50,000 cars $12,000 plus cost of windshield Because Hobbit Cars are a unique size and shape, there is no outside market for Froto's Windshields a) What transfer price should be used to 'sell' windshields to Bilbo? b) How many cars should Bilbo make and sell? c) how do you evaluate Froto and Bilbo (cost, revenue, or profit center)? MordorZone, the Middle Earth's largest auto supply store wants to buy up to 80,000 windshields from Froto at $900 each a) How many windsheilds should be sold to MordorZone to maximize Hobbit profits? b) What transfer price should be used to sell windshields to Bilbo? C) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue, or profit center)? You are Gandoff, CEO of Hobbit Car Emporium and MordorZone, the Middle Earth's largest auto supply store want to buy up to 30,000 windshields from Froto at $900 each a) How many windshields should be sold to MordorZone to maximize Hobbit Profits? b) What transfer price should be used to 'sell' windshields to Bilbo? c) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue or profit center)?

capacity variable cost of windshield: variable cost of car Bilbo Sells cars to the following: The Shire Autoplex Froto Windshield Division Prancing Pony Autos Cars of Rivendale Situation 1: Situation 2: Situation 3: 80,000 windshields $400 20,000 cars at $14,000 each 20,000 cars at $13,000 each 10,000 cars at $12,600 each Bilbo Car Company 50,000 cars $12,000 plus cost of windshield Because Hobbit Cars are a unique size and shape, there is no outside market for Froto's Windshields a) What transfer price should be used to 'sell' windshields to Bilbo? b) How many cars should Bilbo make and sell? c) how do you evaluate Froto and Bilbo (cost, revenue, or profit center)? MordorZone, the Middle Earth's largest auto supply store wants to buy up to 80,000 windshields from Froto at $900 each a) How many windsheilds should be sold to MordorZone to maximize Hobbit profits? b) What transfer price should be used to sell windshields to Bilbo? C) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue, or profit center)? You are Gandoff, CEO of Hobbit Car Emporium and MordorZone, the Middle Earth's largest auto supply store want to buy up to 30,000 windshields from Froto at $900 each a) How many windshields should be sold to MordorZone to maximize Hobbit Profits? b) What transfer price should be used to 'sell' windshields to Bilbo? c) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue or profit center)?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...
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capacity variable cost of windshield: variable cost of car Bilbo Sells cars to the following: The Shire Autoplex Froto Windshield Division Prancing Pony Autos Cars of Rivendale Situation 1: Situation 2: Situation 3: 80,000 windshields $400 20,000 cars at $14,000 each 20,000 cars at $13,000 each 10,000 cars at $12,600 each Bilbo Car Company 50,000 cars BUDGET $12,000 plus cost of windshield Because Hobbit Cars are a unique size and shape, there is no outside market for Froto's Windshields a) What transfer price should be used to 'sell' windshields to Bilbo? b) How many cars should Bilbo make and sell? c) how do you evaluate Froto and Bilbo (cost, revenue, or profit center)? MordorZone, the Middle Earth's largest auto supply store wants to buy up to 80,000 windshields from Froto at $900 each a) How many windsheilds should be sold to MordorZone to maximize Hobbit profits? b) What transfer price should be used to 'sell' windshields to Bilbo? C) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue, or profit center)? You are Gandoff, CEO of Hobbit Car Emporium and MordorZone, the Middle Earth's largest auto supply store want to buy up to 30,000 windshields from Froto at $900 each a) How many windshields should be sold to MordorZone to maximize Hobbit Profits? b) What transfer price should be used to sell windshields to Bilbo? c) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue or profit center)? standard transfer
Transcribed Image Text:capacity variable cost of windshield: variable cost of car Bilbo Sells cars to the following: The Shire Autoplex Froto Windshield Division Prancing Pony Autos Cars of Rivendale Situation 1: Situation 2: Situation 3: 80,000 windshields $400 20,000 cars at $14,000 each 20,000 cars at $13,000 each 10,000 cars at $12,600 each Bilbo Car Company 50,000 cars BUDGET $12,000 plus cost of windshield Because Hobbit Cars are a unique size and shape, there is no outside market for Froto's Windshields a) What transfer price should be used to 'sell' windshields to Bilbo? b) How many cars should Bilbo make and sell? c) how do you evaluate Froto and Bilbo (cost, revenue, or profit center)? MordorZone, the Middle Earth's largest auto supply store wants to buy up to 80,000 windshields from Froto at $900 each a) How many windsheilds should be sold to MordorZone to maximize Hobbit profits? b) What transfer price should be used to 'sell' windshields to Bilbo? C) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue, or profit center)? You are Gandoff, CEO of Hobbit Car Emporium and MordorZone, the Middle Earth's largest auto supply store want to buy up to 30,000 windshields from Froto at $900 each a) How many windshields should be sold to MordorZone to maximize Hobbit Profits? b) What transfer price should be used to sell windshields to Bilbo? c) How many cars should Bilbo make and sell? d) How do you evaluate Froto and Bilbo (cost, revenue or profit center)? standard transfer
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