Question
In: Accounting
The Southern Division of Barstol Company makes and sells a single product, which is a part...
The Southern Division of Barstol Company makes and sells a single product, which is a part used in manufacturing trucks. The annual production capacity is 29,000 units and the variable cost of each unit is $24. Presently the Southern Division sells 26,000 units per year to outside customers at $35 per unit. The Northern Division of Barstol Company would like to buy 15,000 units a year from Southern to use in its production. There would be no savings in variable costs from transferring the units internally rather than selling them externally. The lowest acceptable transfer price from the standpoint of the Southern Division should be closest to:
Multiple Choice
-
$24.00 per unit
-
$35.00 per unit
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$19.80 per unit
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$32.80 per unit
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The Southern Division of Barstol Company makes and sells a single product, which is a part...
The Southern Division of Barstol Company makes and sells a
single product, which is a part used in manufacturing trucks. The
annual production capacity is 29,000 units and the variable cost of
each unit is $24. Presently the Southern Division sells 26,000
units per year to outside customers at $35 per unit. The Northern
Division of Barstol Company would like to buy 15,000 units a year
from Southern to use in its production. There would be no savings
in variable...
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Variable costs per unit: $22 per unit
Fixed costs per unit (based on capacity): $7 per unit
Capacity in units: 50,000 units
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August 31,000 units
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The company wants to maintain monthly ending inventories of
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Legalos Company makes and sells a single product. It takes seven pounds of direct materials to...
Legalos Company makes and sells a single product. It takes seven pounds of
direct materials to produce one unit of this product. Budgeted production
for the next three months is given below:
Budgeted Units to be Produced
February 18,500 units
March 19,200 units
April 14,300 units
The company wants to maintain monthly ending inventories of direct materials
that are equal to 54% of the following month's production needs. The cost of
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1. Calculate the...
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Budgeted Biks to be Produced
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Legalos Company makes and sells a single product. It takes seven pounds of direct materials to...
Legalos Company makes and sells a single product. It takes seven pounds of
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Budgeted Units to be Produced
February 18,500 units
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Calculate the total...
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