It was business as usual-the dice division was producing lovely colored dice sets and sending them on to the board game division. Completed game sets are sold to the company's fan base of nostalgic grandparents who want to play their childhood board games with their own grandchildren. As things stand, the dice sets themselves are not very valuable in the marketplace, so producing the quantity desired by the board game division is a key objective for the dice division. The dice manager still watches her costs, though, which are variable cost per dice set $3.60 and total product cost per dice set $7.90. (a) Your answer is correct. What type of responsibility center is the dice division? Cost Center The board game division? Profit Center (c) eTextbook and Media Attempts: 1 of 3 used Suppose the market trends shift even more toward "old school" games, and the dice sets, all by themselves, suddenly become very popular. The dice divisional manager realizes she could sell the sets externally for $10.60 per set and make some profit instead of simply transferring them to the game division, where she doesn't currently recognize any profit. If this is the case, within what price range should the dice divisional manager be willing to sell the dice sets internally? (Round answers to 2 decimal places, e.g. 15.25.) Minumum transfer price $ Maximum transfer price $

TS Electronics is a manufacturer with two departments: computer chips and cell phones. The computer chip that is produced in the Chips Department can be sold to customers at $6.25 per chip. The costs associated with the computer chips are as follows: (Click the icon to view the computer chip costs.) The Cell Phone Department has been purchasing the chips that it needs for $4.00 per chip from Chip Universe, but the manager was thinking that if the Chips Department could supply the chips for less than what Chip Universe is asking, then it would arrange a transfer between departments instead of giving the business to an external company. If the Cell Phone Department needs 240,000 computer chips and current production in the Chips Department is 480,000 chips, should a transfer take place? If so, at what price? (Note: For internal transfers, the selling and administrative costs are reduced to $0.45 per unit.) What other qualitative factors might need to be considered? First, let's determine…

The company president does not believe that the formula should be altered for fear it will tarnish the company’s brand. She prefers that the company become more efficient in manufacturing the product. If fixed manufacturing costs can be reduced by $250,000 and variable direct manufacturing labor costs are reduced by $1 per unit, will Westerly achieve its target cost?

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