Question: Help me solve it q3 pre uestion: 1 point(s) possible K McBride Company has two divisions, Division C and Division D. Division C manufactures Part

Help me solve it q3 pre

Help me solve it q3 pre uestion: 1 point(s) possible K McBride

uestion: 1 point(s) possible K McBride Company has two divisions, Division C and Division D. Division C manufactures Part C82 Part C82 is an essential component for Division D's only product; the division sells 150,0 and sells it to Division D, and also sells the same part to the outside market for $50 per unit. Division units per year at a price of $130 per unit. Division D's fixed costs are $4,500,000 per year C has capacity to make 400,000 units of C82 per year. The division's fixed costs are $3,500,000 per and its variable costs per unit, excluding the cost of Part C82, are as follows year and its variable costs per unit are as follows: (Click the icon to view the data for Division D.) (Click the icon to view the data for Division C.) Read the requirement Suppose Division C's demand for C82 from the outside market is currently 100,000 units per year. By how much will McBride's income decrease if Division D purchases its desired 150,000 units of C82 $50 per unit from the market rather than from Division C? If Division D purchases its desired 150,000 units of C82 at $50 per unit from the market rather than from Division C, McBride's income will decrease by $ What transfer price(s) would you suggest to induce both divisions to want Division D to purchase from Division C instead of from the market? To induce an internal transfer, the transfer price should be - X Division C Direct materials $ 16 Direct labor 12 Variable overhead 10

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!