Question: I need help with requirement 3 Wheely, Inc, has two divisions, A and B, which manufacture expensive bicydes. Division A produces the bicycie trame, and


Wheely, Inc, has two divisions, A and B, which manufacture expensive bicydes. Division A produces the bicycie trame, and Dvison B assembles the rest of the bicyde onto the trame. There is a markef far both the subassembly and the final product. Each division has been designmed as a profit cente. The transior price for the subassembly thas been set at the long-run averoge maket price. The following data are available for each division: (Click to view the daca.) Beouined Requitement 1. Shoild transfers be made to Division B if there is no unuted copadity in Division A7is the murket price tha correct tunafer price? Show your computations: Bega by calculating the gain of loos it transters are made to Divisice 8 when thete is no unused capacily in Division A Select the formula you wit isse and enter the amountis. (Use partentieses of a minus sign for a loss.) Shoudd transtors be made to Divison B it there is no unused capocty in Division A? Transfers be mode becouse the inciecnental teverwes are the incremental costs. Select the formula you will use to calculate the correct vansfer price. Is the market pice the conect tianvler price? because the market price is the minimum translor price Should 320 unts be transtered to Division B7 At what tianster price? 'A. Yea, 320 units chould be transterted to Division B at a price between 5105 and 5155 . c. Yes, 320 unts ahould be tansered to Division B at a price of 5720 . D. Na. 320 units should noc be trantered to bisison 1 . would you be inclined to buy at \$155? Explain. The contrioution to the company at a whole if a transler whet fiase would be-1 per unit. Data table
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
