Management of the Catering Company would like the Food Division to transfer 10800 cans of its final product to the Restaurant Division for $95. The Food Division sells the product to customers for $130 per unit. The Food Division's variable cost per unit is $80 and its fixed cost per unit is $15. The Food Division is currently operating at full capacity. What is the minimum transfer price the Food Division should accept? $15 O $80 O $95 O $130
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- Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?Management of the Cullumber Company would like the Food Division to transfer 10600 cans of its final product to the Restaurant Division for $70. The Food Division sells the product to customers for $210 per unit. The Food Division’s variable cost per unit is $50 and its fixed cost per unit is $20. The Food Division is currently operating at full capacity. What is the minimum transfer price the Food Division should accept? $50 $70 $20 $210Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for $30. The Food Division sells the product to customers for $70 per unit. The Food Division’s variable cost per unit is $35 and its fixed cost per unit is $10. If the Food Division is currently operating at full capacity, what is the minimum transfer price the Food Division should accept? Group of answer choices $45 $70 $35 $30
- The Heating Division of Swifty International produces a heating element that it sells to its customers for $38 per unit. Its unit variable cost is $23, and its unit fixed cost is $8. Top management of Swifty International would like the Heating Division to transfer 15,400 heating units to another division within the company at a price of $31. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept? Minimum transfer price 23Management of the Crane Company would like the Food Division to transfer 11000 cans of its final product to the Restaurant Division for $40. The Food Division sells the product to customers for $80 per unit. The Food Division’s variable cost per unit is $43 and its fixed cost per unit is $9.If the Food Division has 11000 units available capacity, what is the minimum transfer price the Food Division should accept?Penn Company has a division that manufactures a component that sells for $50 and has variable costs of $25 and fixed costs of $10. Another division wants to purchase the component. What is the minimum transfer price if the division is operating at capacity? $10 $25 $35 $50
- Momix Corp. has two divisions, King and Queen. King produces a widget that Queen could use in its production. King's variable costs are $5 per widget while the full cost is $8. Widgets sell on the open market for $14 each. If King is operating at capacity, what would be the cost savings if the transfer were made and Queen currently is purchasing 145,000 units on the open market? $0 $700,000 $800,000 $1,200,000The Can Division of Crane Company manufactures and sells tin cans externally for $0.70 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.07, respectively. The Packaging Division wants to purchase 50,000 cans at $0.31 a can. Selling internally will save $0.05 a can.Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept? $0.67 $0.39 $0.36 $0.65The Windshield division of Fast Car Co. makes windshields for use in Fast Car’s Assembly division. The Windshield division incurs variable costs of $200 per windshield and has capacity to make 500,000 windshields per year. The market price is $450 per windshield. The Windshield division incurs total fixed costs of $3,000,000 per year. If the Windshield division has excess capacity, what is the range of possible transfer prices that could be used on transfers between the Windshield and Assembly divisions?
- The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The Windshield division incurs variable costs of $208 per windshield and has capacity to make 670,000 windshields per year. The market price is $530 per windshield. The Windshield division incurs total fixed costs of $4,000,000 per year. If the Windshield division has excess capacity, what is the range of possible transfer prices that could be used on transfers between the Windshield and Assembly divisions? Transfer price per windshield will be at least but not more thanThe Can Division of Sheffield Corp. manufactures and sells recyclable containers externally for $0.97 per container. Its unit variable costs and unit fixed costs are $0.24 and $0.11, respectively. The Packaging Division wants to purchase 50,000 containers at $0.36 per unit. Selling internally will save $0.02 a container.Assuming that the Can Division has sufficient capacity, what is the minimum transfer price it should accept? a.$0.24 b.$0.36 c.$0.34 d.$0.22The Windshield division of Fast Car Co. makes windshields for use in Fast Car’s Assembly division. The Windshield division incurs variable costs of $200 per windshield and has capacity to make 500,000 windshields per year. The market price is $450 per windshield. The Windshield division incurs total fixed costs of $3,000,000 per year. If the Windshield division is operating at full capacity, what transfer price should be used on transfers between the Windshield and Assembly divisions?