Question: how do i do this The Traile division of Baxter Bicycles makes bike trallers thot attach to blcycles and can carry chlidren or cargo. The
The Traile division of Baxter Bicycles makes bike trallers thot attach to blcycles and can carry chlidren or cargo. The traliers have a market price of $110 each. Eoch traber incurs $35 of variable manufactuting costs. The Traller division has copacity for 27,000 traliers 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,500 trallers per year from the Traller division. If the Traller division per year and has fixed costs of $420,000 per year. Aan sell all of the vailers it monufoctures to outside customers (ond has no excess capacity), what price should be used on transfers 2. Assume the Trailer division currentiy only seiis 9.200 traliers to outside customers and hos excess capacity. The Assembly division wants to buy 5,500 trailers per year trom the Trailer division. What is the range of acceptable prices on transfers between divisions? between divisions
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
