Ivanhoe Corporation manufactures wireless soundbar speakers. It is a division of Vany TV, which manufactures televisions....

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Ivanhoe Corporation manufactures wireless soundbar speakers. It is a division of Vany TV, which manufactures televisions. Ivanhoe sells the speakers to Vany as well as to retail stores. The following information is available for Ivanhoe's speaker: unit variable cost $54; unit fixed cost $42; and a unit selling price of $126 to outside customers. Vany currently purchases speakers from an outside supplier for $118 each. Top management of Vany would like Ivanhoe to provide 43,000 speakers per year at a transfer price of $54 each. (a) Compute the minimum transfer price that Ivanhoe should accept assumping Ivanhoe is operating at full capacity. (b) Minimum transfer price Compute the minimum transfer price that Ivanhoe should accept assumping Ivanhoe has sufficient excess capacity to provide the 43,000 speakers to Vany. Minimum transfer price $ Ivanhoe Corporation manufactures wireless soundbar speakers. It is a division of Vany TV, which manufactures televisions. Ivanhoe sells the speakers to Vany as well as to retail stores. The following information is available for Ivanhoe's speaker: unit variable cost $54; unit fixed cost $42; and a unit selling price of $126 to outside customers. Vany currently purchases speakers from an outside supplier for $118 each. Top management of Vany would like Ivanhoe to provide 43,000 speakers per year at a transfer price of $54 each. (a) Compute the minimum transfer price that Ivanhoe should accept assumping Ivanhoe is operating at full capacity. (b) Minimum transfer price Compute the minimum transfer price that Ivanhoe should accept assumping Ivanhoe has sufficient excess capacity to provide the 43,000 speakers to Vany. Minimum transfer price $

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Minimum Transfer Prices for Ivanhoe Corporation We need to determine the minimum transfer ... View the full answer