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
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$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...
Division S of York Company makes a part and sells to other companies. Data on that...
Division S of York Company makes a part and sells to other
companies. Data on that part appear below:
Selling price on external market: $30 per unit
Variable costs per unit: $22 per unit
Fixed costs per unit (based on capacity): $7 per unit
Capacity in units: 50,000 units
Division B, another division of York Company, is currently
purchasing 10,000 units of a similar product each period from an
outside supplier for $28 per unit, but would like to begin...
A company makes and sells a single product, the variable cost of the production is $3...
A company makes and sells a single product, the variable cost of
the production is $3 per unit
and variable cost of selling is $1 per unit, fixed cost totalled
$600, and the selling price per unit
was $6. The company budgeted to make and sell 3 000 units in the
next year.
Required
Prepare a break even chart showing the expected amount of the
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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
direct materials is $1.50 per pound.
Calculate the total...
ABC Company makes and sells a single product. It requires 2.5 pounds of direct materials to...
ABC Company makes and sells a single product. It requires
2.5 pounds of direct materials to produce one unit of this
product. Budgeted units to be produced for the next four
months is given below:
Budgeted Units to be Produced
July 35,000 units
August 31,000 units
September 11,000 units
October 34,000 units
The company wants to maintain monthly ending inventories of
direct materials equal to 36% of the next month's production
needs. The cost of direct materials is $9 per...
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
direct materials is $1.50 per pound.
1. Calculate the...
Orr Company makes and sells a single product called a Bik. It takes six yards of...
Orr Company makes and sells a single product called a Bik. It takes
six yards of Material A to make one Bik. Budgeted production of Biks
for the next three months is as follows:
Budgeted Biks to be Produced
February 23,000 units
March 19,000 units
April 28,000 units
The company wants to maintain monthly ending inventories of Material A
that are equal to 39% of the following month's production needs. The
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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 45% of the following month's production needs. The cost of
direct materials is $1.60 per pound.
Calculate the total...
King Company makes a single product that it sells to retail stores. The firm’s finishing department...
King Company makes a single product that it sells to retail
stores. The firm’s finishing department uses hand labor to perform
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vice president to acquire machinery that will perform most of the
functions of this department. The finishing department has
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...
Division A of a firm produces a single product, which is sold only to Division B....
Division A of a firm produces a single product, which is
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Division A annually sells 100,000 units of its product to Division
B for $5 per unit and earns $150,000 in operating profit. Division
B currently earns $250,000. If Division A raises its selling price
to $6 per unit and nothing else changes:
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