Question: ACCT 2270 / A chair's variable cost is $51 and its market value as a piece of unfinished furniture is $67 at a transfer point
ACCT 2270 /

A chair's variable cost is $51 and its market value as a piece of unfinished furniture is $67 at a transfer point from the assembly division to the finishing division. The finishing division's variable cost of sanding and finishing the chair is $24, and the selling price of the finished chair is $86. Requirements Complete the tabulation of the contribution margin per unit for the finishing division's performance and overall company performance under the two alternatives of (a) selling to outsiders at the transfer point and (b) sanding and finishing the chair and then selling to outsiders. N As finishing division manager, which alternative would you choose? Explain. Requirement 1. Complete the tabulation of the contribution margin per unit for the finishing division's performance and overall company performance under the two alternatives of (a) selling to outsiders at the transfer point and (b) sanding and finishing the chair and then selling to outsiders. (Complete all answer boxes. For amounts that are $0, make sure to enter '0" in the appropriate cell.) Sell to outsiders at transfer point Finishing division Overall performance performance Selling price Variable costs: Assembly division Finishing division Total variable costs Contribution to net income Enter any number in the edit fields and then click Check Answer. parts Clear All Check Answer remaining
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