The trailers have a retail price of $102 each. Each trailer incurs $40 of variable manufacturing costs. The trailer division has capacity for 25,000 trailers per year and incurs fixed costs of $510,000 per year. Required: 1. Assume the assembly division of Baxter Bicycles wants to buy 5,700 trailers per year from the trailer division. If the trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles's divisions? 2. Assume the trailer division currently only sells 10,200 trailers to outside customers, and the assembly division wants to buy 5,700 trailers per year from the trailer division. What is the range of acceptable prices that could be used on transfers between Baxter Bicycles's divisions?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The trailers have a retail price of $102 each. Each trailer incurs $40 of variable manufacturing costs. The trailer division has capacity ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
When a company is following the proportionality principle in its policy creation, the security levels, costs, practices, and procedures are all appropriate and proportionate to the degree of reliance on the system and the value of the data.
Answers (1)
In this lesson, to "associate concepts" means to describe their differences. true or false
Answers (1)
Arshadi Corp.'s sales last year were $52,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO) ?
Answers (1)
Who must make the determination to cancel an invitation for bids after bid opening?
Answers (1)
On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1.
Answers (1)
New Questions in Business
Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and Finished Goods Inventory accounts had applied overhead costs of $59,300 and $38,000 in them, respectively.
Answers (1)
The Clean and Shiny Car Wash Company charges $95 to detail a car They detailed 75 cars during the past month. Their expenses are given in the table below Expense Rent of Space Supplies Advertising 1.
Answers (2)
J has a life policy with the Guaranteed Insurability rider. J has just celebrated their 42nd birthday and realizes that she wants to use her rider and buy more death benefit. Which of the following will apply to J's request? A.
Answers (1)
Which of the following is not a reason some people believe that capital punishment should be abolished? to free up spaces spiritual beliefs the financial cost the idea of new evidence could surface that would prove the criminal innocent
Answers (2)
The fiscal year-end 2016 financial statements for Walt Disney Co. report revenues of $55,632 million, net operating profit after tax of $9,954 million, net operating assets of $58,603 million.
Answers (1)