Question: answer all parts and explain please Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, Induding the Alamosa Division, producer of

answer all parts and explain please
answer all parts and explain please Determining Market-Based and Negotiated Transfer Prices
Carreker, Inc., has a number of divisions, Induding the Alamosa Division, producer

Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, Induding the Alamosa Division, producer of surgical blades, and the Tavaris Division, a manufacturer of medical instruments, Alamosa Division produces a 2.6 cm steel blade that can be used by Tavaris Division in the production of scalpels. The market price of the blade is $21.00. Cost Information for the blade is: Variable product cost $9.20 Fixed cost 5.80 Total product cost $15.00 Tavaris needs 15,000 units of the 2.6 cm blade per year. Alamosa Division is at full capacity (90,000 units of the blade). Required: Round your answers to the nearest cent. 1. IF Carreker, Inc., has a transfer pricing policy that requires transfer at full product cost, what would the transfer price be? per unit Do you suppose that Alamosa and Tavaris civisions would choose to transter at that price? Alamosa $ Tavarts 2. 11 Carreker, Inc, has a transfer pricing policy that requires transfer at full cost plus 25 percent, what would the transfer price be? 5 per unit Do you suppose that Alamosa and Tavaris divisions would choose to transfer at that price? Alamosa Tavarls 2. 11 Carreker, Inc., has a transfer pricing policy that requires transfer at full cost plus 25 percent, what would the transfer price be? $ per unit Do you suppose that Alamosa and Tavaris divisions would choose to transfer at that price? Alamosa Tavaris 3. If Garreker, Inc., has a transfer pricing policy that requires transfer at variable product cont plus a fixed fee of $2.00 per unt, what would the transfer price be? per unit Do you suppose that Alamesa and Tavaris division would choose to transfer at that price? Alamosa Tavaris 4. What If Alamosa Division plans to produce and sell only 65,000 units of the 2.6 cm blnde next year? The Correker, the policy is that all transfers be at full cost. Which division sets the minimum transfer price, and what is it? per unit which division sets the maximum transfer price, and what is #? per unit Do you support that Alamose and Tavaris divisions would choose to transfer Crea My Work Next >

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!