Question: Division ( Y ) has asked Division ( X ) of the same company to supply it with 5 , 4

Division \( Y \) has asked Division \( X \) of the same company to supply it with 5,400 units of part L763 this year to use in one of its products. Division \( Y \) has received a bid from an outside supplier for the parts at a price of \(\$ 35\) per unit. Division \( X \) has the capacity to produce 21,600 units of part L763 per year. Division \( X \) expects to sell 19,440 units of part L763 to outside customers this year at a price of \(\$ 36.40\) per unit. To fill the order from Division Y, Division X would have to cut back its sales to outside customers. Division X produces part L763 at a variable cost of \(\$ 27\) per unit. The cost of packing and shipping the parts for outside customers is \(\$ 2\) per unit. These packing and shipping costs would not have to be incurred on sales of the parts to Division Y.
Required:
a. What is the range of transfer prices within which both the Divisions' profits would increase as a result of agreeing to the transfer of 5,400 parts this year from Division \( X \) to Division Y?(Round your final answers to \(\mathbf{2}\) decimal places.)
Range of transfer prices:
Transfer price
b. Is it in the best interests of the overall company for this transfer to take place?
Yes
No
Division \ ( Y \ ) has asked Division \ ( X \ )

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