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 $
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 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
Your answer is correct.
What type of responsibility center is the dice division?
(c)
Cost Center
The board game division?
Profit Center
eTextbook and Media
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
eTextbook and Media
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