Refer to the data in Problem 15-26. Division managers are evaluated using residual income using a 15
Question:
Required
a. What is the residual income for Spartan without the transfer to Trojan?
b. What is Spartan’s residual income if it transfers 100,000 units to Trojan at $16 each?
c. What is the minimum transfer price for the 100,000-unit order that Spartan would accept if it were willing to maintain the same residual income with the transfer as it would accept by selling its 450,000 units to the outside market?
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a RI for Spartan Division 450000 x 28 8 14 x 500000 015 x 840000...View the full answer
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Related Book For 
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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