9 29 Shaw is a lumber company that also manufactures custom cabinetry. It is made up...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
9 29 Shaw is a lumber company that also manufactures custom cabinetry. It is made up of two divisions: Lumber and Cabinetry. The Lumber Division is responsible for harvesting and preparing lumber for use; the Cabinetry Division produces custom-ordered cabinetry. The lumber produced by the Lumber Division has a variable cost of $2.70 per linear foot and full cost of $3.70. Comparable quality wood sells on the open market for $8.10 per linear foot. Required: 1. Assume you are the manager of the Cabinetry Division. Determine the maximum amount you would pay for lumber. 2. Assume you are the manager of the Lumber Division. Determine the minimum amount you would charge for the lumber if you have excess capacity. Repeat assuming you have no excess capacity. 3. Assume you are the president of Shaw. Determine a mutually beneficial transfer price assuming there is excess capacity. Complete this question by entering your answers In the tabs below. Required 1 Required 2 Required 3 Assume you are the manager of the Lumber Division. Determine the minimum amount you would charge for the lumber if you have excess capacity. Repeat assuming you have no excess capacity. Note: Enter your answers to 2 decimal places. Minimum Price with Excess Capacity $ 2.70 Minimum Price without Excess Capacity $ 3.70 9 29 Shaw is a lumber company that also manufactures custom cabinetry. It is made up of two divisions: Lumber and Cabinetry. The Lumber Division is responsible for harvesting and preparing lumber for use; the Cabinetry Division produces custom-ordered cabinetry. The lumber produced by the Lumber Division has a variable cost of $2.70 per linear foot and full cost of $3.70. Comparable quality wood sells on the open market for $8.10 per linear foot. Required: 1. Assume you are the manager of the Cabinetry Division. Determine the maximum amount you would pay for lumber. 2. Assume you are the manager of the Lumber Division. Determine the minimum amount you would charge for the lumber if you have excess capacity. Repeat assuming you have no excess capacity. 3. Assume you are the president of Shaw. Determine a mutually beneficial transfer price assuming there is excess capacity. Complete this question by entering your answers In the tabs below. Required 1 Required 2 Required 3 Assume you are the manager of the Lumber Division. Determine the minimum amount you would charge for the lumber if you have excess capacity. Repeat assuming you have no excess capacity. Note: Enter your answers to 2 decimal places. Minimum Price with Excess Capacity $ 2.70 Minimum Price without Excess Capacity $ 3.70
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Like Death Valley, the Dead Sea is a place where you can walk on dry land below sea level, and an apparently unmotivated hole in the ground along a strike-slip fault. How do you think it formed?
-
Recall the Toms, Inc., problem. Letting W = jars of Western Foods Salsa M = jars of Mexico City Salsa Leads to the formulation: Max1W + 1.25M s.t. 5W + 7M 4480 Whole tomatoes 3W + 1M 2080 Tomato...
-
Discuss how warehousing security can be enhanced by focusing on people, facilities, and processes.
-
What is the purpose of the materials requisition?
-
What business strategy change led to the decision to centralize the IS organization personnel and other IT assets? InsuraCorp has several business units that provide financial products, services, and...
-
Hi, could you help me solve this exercice please, with explanations as detailed as possible please. Thank you.
-
Few U.S. states depend completely on deals charges for state income, as those states don't demand a state personal expense. Such states will more often than not have a moderate to a lot of the travel...
-
A marketing manager wants to know if the sales of the company will increase if he doubles the advertising dollars. In this case what would be the most suitable method of investigation? Explain.
-
The PRINTXSAC company ended up with an inventory level of 4,000,000.00 million dollars the previous month, with the following cost variables inherent to the administration and management of...
-
The market for cars in Santiago de Chile has supply and demand given by: by P = 0.4Qs and P = 7,000-Qd. a. How many cars are bought in equilibrium? The local government wants to raise revenue by...
-
Perez Company is considering investing in two new vans that are expected to generate combined cash inflows of $27,000 per year. The vans' combined purchase price is $91,500. The expected life and...
-
How much of the master budget variance for CGS was caused by some factor other than volume? (Hint: this is NOT a manufacturing business). $ For U? What could account for this variance? How much of...
-
Determine the product of the following synthesis. 1. KCN 2. MgBr 3. HO
-
What mass of KBr (in grams) should you use to make 350.0 mL of a 1.30 M KBr solution?
-
When should standard costs be established and how often should such standards be changed?
-
Standard costs can be set too high or too low for motivational purposes. Comment.
-
Define standard costs and describe how they are developed.
Study smarter with the SolutionInn App