Question: & Moving to another question will save this response. Question 4 of 5 Question 4 10 points SA Muharraq Co, has Division A that manufactures

& Moving to another question will save this response. Question 4 of 5 Question 4 10 points SA Muharraq Co, has Division A that manufactures and sells a number of parts, including Part XYZ. Data concening Part XYZ appear below Capacity in units 55,000 $95 Selling price to outside customers Variable cost per unit $55 Fixed cost per unit (based on capacity) $20 The company has Division B that could use Part XYZ in one of its products Division B is currently purchasing 20,000 of Part XYZ per year from an overseas supplier at a cost of 993 per part The company has Division B that could use Part XYZ in one of its products. Division B is currently purchasing 20,000 of Pat XYZ per year from an overseas supplier at a cost of 193 per part Required: a. Assume that Division A is selling all of Part XYZ it can produce to outside customers. What is the acceptable range, if any, for the tranfer price between the two divi? 14 marks) b. Assume again that Division A is selling all of Part XYZ it can produce to outside customers. Also assume that $4 in variable expenses can be avoided on transfers within the company due to redond shipping and selling costs. What is the acceptable range, if any, for the transfer price between the two devions? [4 marks] e. Based on requirement (a), assume Division A offers to sell 20,000 units to Division 13 for $115 and that Division B refuses this price. What will be the loss in potential profits for D A7 12 marks] For the toolbar, press ALT+F10 (PC) or ALT+IN+F10 (Mac) *** A 24 I XOQ 52 V BI Paragraph US 10pt Arial m n CR LP
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