Danone makes a variety of sound and video equipment and consists of several divisions. The Components Division
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Question:
Danone makes a variety of sound and video equipment and consists of several divisions. The Components Division (CD) supplies the Microphone Division (MD) a key component part (labelled CX1) for a negotiated transfer price of $80. MD includes the CX1 component in Microphone Style ZX1. Both CD and MD currently have idle capacity. CD and MD are re-negotiating the transfer price for component part CX1. The selling price of the Microphone Style ZX1 will not change.
The transfer price that the two divisions negotiate will impact the profits of:
Note: There may be multiple answers.
Group of answer choices
a. Microphone Division
b. Danone
c. Components Division
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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