Question: The Windshield division of Fast Car Co makes windshields for
The Windshield division of Fast Car Co. makes windshields for use in Fast Car’s Assembly division. The Windshield division incurs variable costs of $ 200 per windshield and has capacity to make 500,000 windshields per year. The market price is $ 450 per windshield. The Windshield division incurs total fixed costs of $ 3,000,000 per year. If the Windshield division is operating at full capacity, what transfer price should be used on transfers between the Windshield and Assembly divisions? Explain.
Answer to relevant QuestionsCar Mart pays $ 130,000 rent each year for its two- story building. The space in this building is occupied by five departments as specified here. Paint department . . . . . . . . . . . . 1,440 square feet of first-floor ...Marathon Running Shop has two service departments (advertising and administration) and two operating departments (shoes and clothing). During 2013, the departments had the following direct expenses and occupied the following ...Heart & Home Properties is developing a subdivision that includes 600 home lots. The 450 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 150 lots in the Hilltop ...Harmon’s has several departments that occupy all floors of a two- story building that includes a basement floor. Harmon rented this building under a long-term lease negotiated when rental rates were low. The departmental ...Brian Linton’s company, United By Blue, sells jewelry and apparel. His company’s plans call for continued expansion into other types of products. Required 1. How can United By Blue use departmental income statements to ...
Post your question