The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a market price of $91 each. Each trailer incurs $32 of variable manufacturing costs. The Trailer division has capacity for 20,000 trailers per year and has fixed costs of $440,000 per year. 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,800 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers (and has no excess capacity), what price should be used on transfers between divisions? 2. Assume the Trailer division currently only sells 10,700 trailers to outside customers and has excess capacity. The Assembly division wants to buy 5,800 trailers per year from the Trailer division. What is the range of acceptable prices on transfers between divisions? 1. 2. Transfer price per trailer Transfer price per trailer will be at least but not more than The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a market price of $91 each. Each trailer incurs $32 of variable manufacturing costs. The Trailer division has capacity for 20,000 trailers per year and has fixed costs of $440,000 per year. 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,800 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers (and has no excess capacity), what price should be used on transfers between divisions? 2. Assume the Trailer division currently only sells 10,700 trailers to outside customers and has excess capacity. The Assembly division wants to buy 5,800 trailers per year from the Trailer division. What is the range of acceptable prices on transfers between divisions? 1. 2. Transfer price per trailer Transfer price per trailer will be at least but not more than
Expert Answer:
Answer rating: 100% (QA)
Answer VC per trailer 3200 CM per unit 9132 5900 Therefore the m... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
The Trailer department of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $ 200 each. Each trailer incurs $ 80 of...
-
The Trailer department of Soni Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $100 each. Each trailer incurs $40 of variable...
-
(a) Compute the primary Class 1 NICs payable by the following weekly-paid employees for the week ending 14 August 2020: (i) Employee A has earnings for the week of 110. (ii) Employee B has earnings...
-
Rob wishes to buy a European put option on BioLabs, Inc., a non-dividendpaying common stock , with a strike price of $40 and six months until expiration. BioLabs common stock is currently selling for...
-
Sold goods of 20,000 to Mahesh. Subsequently received cash from Mahesh 19,800 in the final settlement of his account. Purchased goods from Deepak of 30,000. Subsequently issued a cheque of 29,500 to...
-
Following is an inventory test count working paper that documents Donald Schwab's physical inventory observations in the Hillsdale Company's roofing materials warehouse on December 31, 1999, the date...
-
Weighted-average method, equivalent units. Consider the following data for the Assembly Division of Fenton Watches, Inc.: The Assembly Division uses the weighted-average method of process costing.
-
On January 1, 2021, TulipCo sells equipment it manufactured to PoppyCo in exchange for a $1 million noninterest-bearing note due in two years. The note bears no explicit interest. It says only that...
-
An article in Electronic Packaging and Production (2002, Vol. 42) considered the effect of X-ray inspection of integrated circuits. The rads (radiation dose) were studied as a function of current (in...
-
A student team designed an electric car to participate in a race. The overall length of the car is 2.4 m and it is designed to travel at 70 km/h. Students want to test their car in a one-fourth scale...
-
Write hypothetical letter to a director of education in which you outline your opinions about what schools can do to respond to the fact that sexual orientation, gender identity, and gender...
-
. What do vertical and horizontal surface waves have in common? . Both waves travel within Earth and increase in amplitude with depth below the surface. . Both waves travel along Earth's surface and...
-
Bond H, described in the table below, is sold for settlement on 20 Sept 2022. Annual Coupon 5% Coupon Payment Frequency Semiannual Interest Payment Dates 30 December and 30 June Maturity Date 30...
-
What are the core principles of Zero Trust Security Architecture, and how can organizations implement micro-segmentation and strict identity verification to reduce the risk of lateral movement in...
-
how does the isolation between different tenants ensure security and resource allocation, and what are the best practices for managing virtual network overlays like VXLAN or GRE?
-
Q.1 [36 pts, 12 pts each] Construct a B+ tree for each of the following parts by inserting the following key values in the given order: 44, 20, 22, 32, 34, 46, 17, 38, 26, 18 You should use the...
-
Horse serum containing specific antibody to snake venom has been a successful approach to treating snakebite in humans. How do you think this anti-venom could be generated? What are some advantages...
-
Kevin Plank of Under Armour is introduced in the chapters opening feature. Kevin currently sells his products through multiple outlets. Assume that he is considering two new selling options. Plan A....
-
Waupaca Company establishes a $ 350 petty cash fund on September 9. On September 30, the fund shows $ 104 in cash along with receipts for the following expenditures: transportation-in, $ 40; postage...
-
Managerial accounting is more than recording, maintaining, and reporting financial results. Managerial accountants must provide managers with both financial and nonfinancial information including...
-
White the torsion formula and give S.I. units of various terms.
-
A cast iron water main pipe \(12 \mathrm{~m}\) long, \(500 \mathrm{~mm}\) inside diameter and \(25 \mathrm{~mm}\) wall thickness runs full of water. It is supported at its ends. If the density of...
-
A rectangular cross-section beam has a width of \(100 \mathrm{~mm}\). Determine the depth of the beam so that maximum bending stress in the beam does not exceed \(35 \mathrm{MPa}\). The maximum...
Study smarter with the SolutionInn App