Altoona Corporation has two divisions, Hinges and Doors, which are both organized as profit centers. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Altoona Corporation has two divisions, Hinges and Doors, which are both organized as profit centers. The Hinge Division produces and sells hinges to the Door Division and to outside customers. The Hinge Division has total costs of $35. $22 of which are variable. The Hinge Division is operating significantly below capacity and sells the hinges for $50. The Door Division has received an offer from an outsider vendor to supply all the hinges it needs (28,000 hinges) at a cost of $45. The manager of the Door Division is considering the offer but wants to approach the Hinge Division first. What is the minimum transfer price from the Hinge Division to the Door Division? Altoona Corporation has two divisions, Hinges and Doors, which are both organized as profit centers. The Hinge Division produces and sells hinges to the Door Division and to outside customers. The Hinge Division has total costs of $35. $22 of which are variable. The Hinge Division is operating significantly below capacity and sells the hinges for $50. The Door Division has received an offer from an outsider vendor to supply all the hinges it needs (28,000 hinges) at a cost of $45. The manager of the Door Division is considering the offer but wants to approach the Hinge Division first. What is the minimum transfer price from the Hinge Division to the Door Division?
Expert Answer:
Answer rating: 100% (QA)
The minimum transfer price from the Hinge Division to the Door Division should be the variable cost ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Susan V. Crosson, Belverd E. Needles
Posted Date:
Students also viewed these accounting questions
-
PT. Sultan Food sells food and variety snacks and cake. The company has one restaurant location and serves catering orders for offices. So far, all dishes are made by themselves using family recipes...
-
The Ace Bicycle Company3 produces bicycles. This year's expected production is 10,000 units. Currently Ace also makes the chains for its bicycles. Ace's accountant reports the following costs for...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Payroll Assignment - (50 Marks) The following employees are working in the ABC Clinic, they are paid biweekly. Calculate the gross income, net income, and the total remittance that ABC is to report...
-
The tank is used to store a liquid having a specific weight of 60 lb/ft3. If the tank is full, determine the magnitude of the hydrostatic force on plates CDEF andABDC. 2 ft 1.5 fe 5ft 1,5 1.5 1.5 ft...
-
2 / 5x 4 = 2x 3 / 4
-
In an electric breakdown in air (a spark), an electron (inertia \(9.11 \times 10^{-31} \mathrm{~kg}\) ) experiences an electric force of \(4.83 \times 10^{-13} \mathrm{~N}\). What is the magnitude of...
-
A gas containing nitrogen, benzene, and toluene is in equilibrium with a 40 mole% benzene 60 mole% toluene liquid mixture at 100C and 10 atm. Estimate the gas-phase composition (mole fractions) using...
-
Mr. Rahul is one of major player in textile business in southern part of India but his 65% percent of the product is sold in the domestic market only and 35% is being exported. He is not availing any...
-
Part 2: Presentation and Data Work (90 marks) You have been asked to collect company data and to create a final written presentation based on your analysis of the data and the performance measures...
-
2. Consider the following program: def my decorator (func_to_decorate): def my wrapper (*args, **kwargs): print ("In wrapper, wrapping ()* .format(func_to_decorate_name)) result func_to_decorate...
-
How numerous are the syntax rules, and what are the categorical distinctions among them?
-
If they elect to begin receiving benefits at full retirement age, they can receive full benefits, or if they elect to begin receiving benefits at age 62, they receive benefits at a permanently...
-
Write a class CaveExplorer, that has the following methods: 1. Constructor with no parameters. It should create the two-dimensional structure shown below, where the characters in the layout are 'R'...
-
The next big concern that I can see is diversity. Diversity, equity, inclusion, and belonging (DEIB) are top priorities for HR professionals (Larralde, 2023). There needs to be goals and strategic...
-
The table below shows the last 5 days of a futures contract on corn. Suppose we take a long position in the futures contract on day 0. Delivery is on day 5: on this day the long futures contract...
-
Given the following information, calculate the Effective Borrowing Cost (EBC). Loan amount: $175,000, Term: 30 years, Interest rate: 7 %, Payment: $1,164.28, Discount points: 1, Origination fee:...
-
A handrail, which weighs 120 N and is 1.8 m long. was mounted to a wall adjacent to a small set of steps (Figure P4.26). The support at A has broken, and the rail has fallen about the loose bolt at 8...
-
Strong Company makes racing bicycles. Its Light speed model is considered the top of the line in the industry. Three months ago, to improve quality and reduce production time, Strong purchased and...
-
Metro Transit is determining the price for its newest prepaid fare card. The fare card can be used at any transportation station or retail outlet-no PIN number or signature is required. The following...
-
Connect, Ltd., designs and assembles low-priced portable Internet devices. It estimates that there will be 235,000 requests for its most popular model. Budgeted costs for this product for the year...
-
The marginal tax rate on a corporate income of \(\$ 87,000\) is closest to which of the following? a. 15 percent b. 20.5 percent c. 25 percent d. 34 percent
-
True or False: If the same amount of money is invested in something that can be expensed as in something that must be depreciated (and both provide the same annual returns) then you should choose the...
-
True or False: If investment capital is borrowed, the income tax rate equals \(40 \%\), the after-tax MARR is \(12 \%\), and the loan rate is \(10 \%\), then it is best to repay the loan using Plan 4.
Study smarter with the SolutionInn App