Consider Exhibit 225, which shows the responsibility margins for the SalesDepartment and Repairs Department profit centers at
Question:
Repairs Department has a negative responsibility profit, assume the Repairs Department has asked the manager of the 42nd Street store to allow a transfer price that will earn the normal contribution margin that is earned on repair services to external customers. Compute the new responsibility margins for the Sales and Repairs Departments if the store manager allows the new transfer price.
In Exhibit225,
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Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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