The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry childrenor cargo. The trailers have a retail price of $200 each. Each trailer incurs $80 of variable manufacturingcosts. The Trailer division has capacity for 40,000 trailers per year and incurs fixed costs of $1,000,000per year. Assume the Assembly division of Baxter Bicycles wants to buy 15,000 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles’s divisions? Explain.

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A: The manufacturing cost is the cost of converting raw material into finished goods. It includes the…

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A: The cost of producing any additional unit is total variable cost per product. So the total variable…

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A:

Q: The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of…

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A: Part 1:

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A:

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A:

Q: Waterways has discovered that a small fitting it now manufactures at a unit cost of $1.00 could be…

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A: Given information is: The Croydon division of CC Industries supplies the Hauser division with…

Q: Colt Company owns a machine that can produce two specialized products. Production time for Product…

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A: Solution 1-       Total annual cost of inventory if Ross buys the brackets in lots of 1000 at $14.50…

Q: The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry…

A:

Q: Denver Company is a Manufacturing company that currently operates with two divisions: Dog and Den.…

A:

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.