Question: Question 11 1 pts Division A makes a part with the following characteristics: Production capacity in units. Selling price to outside customers Variable cost per

Question 11 1 pts Division A makes a part with the following characteristics: Production capacity in units. Selling price to outside customers Variable cost per unit Total fixed costs 15.000 units $25 S18 $60.000 Refer back to your answer in the last problem. Division B is now purchasing these parts from an outside supplier at a price of $24 each. If Division B begins to purchase the 5,000 parts from Division A rather than the outside supplier, what is the company as a whole change in net income? ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DISCRIPTIONS Make sure to enter your answer as a positive number (increase) or a negative number (decrease). 24 D Question 10 1 pts Division A makes a part with the following characteristics: Production capacity in units.. Selling price to outside customers Variable cost per unit Total fixed costs 15.000 units $25 $18 $60,000 Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division A is currently selling 10,000 units to its outside customers. What should be the lowest acceptable transfer price from the perspective of Division A? 5,000
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Analysis of the Problem You are given two distinct scenarios where Division A is involved in producing and selling parts to external customers as well as internal divisions Given Data for Both Scenari... View full answer
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