Question: I'd like to understand how to do the following answer? Division A of the Helpful Corporation manufactures product AL57. The division has no idle capacity

I'd like to understand how to do the following answer?

Division A of the Helpful Corporation manufactures product AL57. The division has no idle capacity and can sell all it can produce at $39 per unit. Division B would like to purchase 5,000 units of AL57 from Division A and is negotiating the transfer price. Division A normally has to pay $9 in transportation costs to sell to third-parties. It would not have to pay the $9 in transportation costs if it were to sell the units to Division B. What is the appropriate transfer price for each of the units, assuming Division A sells internally?

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!

12-21. SEA Reporting. (LO12-4) The City of Bancroft has produced a Service Efforts and Accomplishments report for the past three years for each of its operating departments. Key performance...

Division A of the Yogurt Corporation manufactures product A. The division has no idle capacity and can sell all it can produce at $39 per unit. Division B would like to purchase 5,000 units of A from...

Answer 22,23 plz 21 Arrow Chemical Corporation manufactures three chemicals (TM14, NJ35, and KS63) from a joint process. The three chemicals are in industrial grade form at the split-off point. They...

Responsibility Center Presentation Imagine you have been selected by your manager to present a training session to a group of new employees. The new hires do not have accounting backgrounds and have...

About question #74, the answer is [$32 - 12 - 6 - 4 - 0.50] 2,000 = $19,000 where is the "4" come from? ch4 Student: ___________________________________________________________________________ 1....

please open the attachment. there are my questions 1. In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. This oversight...

Attached is Accounting assignment along side recommended readings to answer certain questions. Thank you Assignment 1 Problem 1 15 points Reading - W. L. Ferrara, Cost/Management Accounting: The 21st...

Hi Again, I have alot of stuff due this time. Sorry im just now telling you. Question 1 options: The Washington Company has 100,000 shares of $10 par common stock outstanding. Management declares...

\ This case was developed solely for the purpose of classroom discussion. Some details of the case have been disguised. This case is not intended to serve as endorsements, sources of academic or...

Montonya Company has the following selected data for the current year: Sales (10,000 units) $90,000 Direct materials 30,000 Direct labor costs 10,000 Variable manufacturing overhead 3,500 Fixed...

The chapter said that modern electronics have eliminated the need for a store's cashiers to calculate change due on a purchase. How does this development modify the job description for a cashier? If...

Explain (1) the process by which Descartes uses skepticism to refute skepticism, and what first principle does this lead him to? Explain why this project was important for Descartes to accomplish.

Integrate: 1 0 0 x 3 - 7 5 x 2 1 9 4 x - 1 5 2 2 5 x 2 4 9 d x C

The Pacific Boat Company, which is under contract to the U.S. Navy, assembles troop deployment boats. As part of its research program, it completes the assembly of the first of a new model (PT109) of...

On April 1, 2017, Mendoza Company borrowed 500,000 euros for one year at an interest rate of 5 percent per annum. Mendoza must make its first interest payment on the loan on October 1, 2017, and will...

You just found out that the structure chart needs a change. The Produce Reports module will have a condition, and can send a Contact Rating to three of its own subordinate modules: High Potential,...

Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Deoro produces two models of dishwashers with the following expected prime costs and...

Laguna Realty Co. pays weekly salaries of $8,000 on Friday for a five-day week ending on that day. What is the adjustment at the end of the accounting period, assuming that the period ends (a) On...

Use the process flow diagram to determine which of these events has the greatest net benefit. Station A Station B Station C Station D 1 worker 1 worker 1 worker 1 worker 9 minutes 12 units.hr minutes...

Competence: What knowledge, skills and attitude do I have towards what I am going to do?

1. Imagine a real situation in your workplace or home situation, where you have given another person feedback on something he has done. a. What was your intention? b. How was the feedback perceived?...

Behaviour: What am I doing?