1.
Draw a simple diagram portraying the two divisions and their products and also show the two alternatives that V.T Division has in the production of its TCH–320.
2.
Describe whether any of the TCH–320 units should be produced using the high-density panel and if so state the amount to be produced.
3.
Assume that H.B division transfers 10,000 HDP units per year to V division. Describe the effect of this transfer price on the income of the company.
4.
State the minimum transfer price that H.B Division would find acceptable for the HDP.
5.
Compute the maximum transfer price that V.T Division would find acceptable for HD.
6.
Describe whether the corporate controller of company G would recommend a transfer price.
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Managerial Accounting: Creating Value in a Dynamic Business Environment
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