Use the information for Home Office above with the following 2 changes: 1.The Computer Desk Division is

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Use the information for Home Office above with the following 2 changes:

1.The Computer Desk Division is able to sell at full capacity (15,000 units) for $400 per desk.

2.If there is a transfer between division, the Computer Desk divisionwill save $50 per unit in Variable Marketing and Shipping costs.

Answer the following questions.Show your work and clearly label your answers.

a.What is the appropriate Transfer Price range?

b.If a transfer is made for $360 per desk,how much better or worse off is the firm?

Related Book For answer-question

Cost Management Measuring Monitoring and Motivating Performance

ISBN: 978-0470769423

2nd edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott

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Posted Date: May 12, 2024 03:15 AM

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Use the information for Home Office above with the following 2 changes: 1.The Computer Desk Division is

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a To determine the appropriate transfer price range we need to consider both the selling price of th... View the full answer

Cost Management Measuring Monitoring and Motivating Performance

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