Question: Help Save A 1 Check my work Exercise 15-32 (Algo) International Transfer Prices (LO 15-4) 3.75 Dents hipped San Jose Company operates a Manufacturing Division
Help Save A 1 Check my work Exercise 15-32 (Algo) International Transfer Prices (LO 15-4) 3.75 Dents hipped San Jose Company operates a Manufacturing Division and an Assembly Division. Both divisions are everated as profit centers Assembly buys components from Manufacturing and assembles them for sale Manufacturing sells many components to third parties in addition to Assembly. Selected data from the two operations follow, Manufacturing Assembly Capacity (units 17.00 217.000 Sales price $ 434 5 1,385 Variable costs 5 245 5 514 Fixed costs $40.170.00 524,170.000 elice * For Manufacturing, this is the price to third parties For Assembly, this does not include the transfer price paid to Manufacturing, Suppose Manufacturing is located in Country A with a tax rate of 70 percent and Assembly in Country with a tax rate of 30 percent All other facts remain the same Required: a. Current production levels in Manufacturing are 217,000 units. Assembly requests an additional 57000 units to produce a special ordet What transfer price would you recommend? b. Suppose Manufacturing is operating at full capacity. What transfer price would you recommend? c. Suppose Manufacturing is operating at 388,500 units. What transfer price would you recommend? (Round your answer to 2 decimal places.) Optimal transfer price b. Transfer price csfer price per unit perint perunt
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