In: Accounting

# Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and...

Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $9.70 from an outside vendor. Division A needs 10,600 lamps for the coming year. Division B has the capacity to manufacture 50,000 lamps annually. Sales to outside customers are estimated at 39,400 lamps for the next year. Reading lamps are sold at$ 11.77 each. Variable costs are $7.32 per lamp and include$ 1.28 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $77,300 . Consider the following independent situations. If Division A needs 14,400 lamps instead of 10,600 during the next year, what should be the minimum transfer price accepted by Division B and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, e.g. 10.50.) Minimum transfer price accepted by Division B:$__ per unit

##### Munoz Company has two divisions, A and B. Division A manufactures 6,200 units of product per...
Munoz Company has two divisions, A and B. Division A manufactures 6,200 units of product per month. The cost per unit is calculated as follows. Variable costs $7.40 Fixed costs 19.50 Total cost$ 26.90 Division B uses the product created by Division A. No outside market for Division A’s product exists. The fixed costs incurred by Division A are allocated headquarters-level facility-sustaining costs. The manager of Division A suggests that the product be transferred to Division B at...
##### ? Your company has two? divisions: One division sells software and the other division sells computers...
? Your company has two? divisions: One division sells software and the other division sells computers through a direct sales? channel, primarily taking orders over the internet. You have decided that Dell Computer is very similar to your computer? division, in terms of both risk and financing. You go online and find the following? information: Dell's beta is 1.18?, the? risk-free rate is 4.2 %?, its market value of equity is $67.3 ?billion, and it has$ 708 million...