The Can Division of Coronado Industries manufactures and sells recyclable containers externally for $1.28 per container. Its unit variable costs and unit fixed costs are $0.24 and $0.16, respectively. The Packaging Division wants to purchase 50,000 containers at $0.35 per unit. Selling internally will save $0.08 a container. Assuming that the Can Division has sufficient capacity, what is the minimum transfer price it should accept? O $0.16 O $0.24 O $0.27 O $0.35
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- The Can Division of Sheffield Corp. manufactures and sells recyclable containers externally for $0.97 per container. Its unit variable costs and unit fixed costs are $0.24 and $0.11, respectively. The Packaging Division wants to purchase 50,000 containers at $0.36 per unit. Selling internally will save $0.02 a container.Assuming that the Can Division has sufficient capacity, what is the minimum transfer price it should accept? a.$0.24 b.$0.36 c.$0.34 d.$0.22Please explain in detail. . The Can Division of Concord Corporation manufactures and sells tin cans externally for $ 0.70 per can. Its unit variable costs and unit fixed costs are $ 0.24 and $ 0.07, respectively. The Packaging Division wants to purchase 50,000 cans at $ 0.31 a can. Selling internally will save $ 0.02 a can.Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept? $ 0.24 $ 0.31 $ 0.22 $ 0.29The Selling Division’s unit sales price is P20 and its unit variable cost is P10. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales is 7,500 units. What is the maximum transfer price that the Purchasing Division would be willing to accept if 4,000 units will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50 and that a cost of P1 per unit will be saved from the transfer. _____________________5. The Selling Division’s unit sales price is P20 and its unit variable cost is P10. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales is 10,000 units. What is the maximum transfer price that the Purchasing Division would be willing to accept if 4,000 units will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50. _____________________6. The Selling Division’s unit sales price is P19 and its unit variable…
- The Can Division of Crane Company manufactures and sells tin cans externally for $0.70 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.07, respectively. The Packaging Division wants to purchase 50,000 cans at $0.31 a can. Selling internally will save $0.05 a can.Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept? $0.67 $0.39 $0.36 $0.65Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlun could use in its production. Quail's variable costs are $5.80 per widget while the full cost is $8.80. Widgets sell on the open market for $15.6 each. If Quail has excess capacity, what would be the minimum transfer price if Marlin is purchasing 190000 units on the open market? a) $5.8 b) $8.8 c) $15.6 d) $6.8Raven, Inc. has a division that manufactures a component that sells for $185 and has a variable cost of $50. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $21. What is the minimum transfer price if the division is operating below its capacity?
- Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.60 per pound and costs $15.40 per pound to produce. Product D would sell for $36.90 per pound and would require an additional cost of $10.10 per pound to produce. What is the differential cost of producing Product D?1. The Selling Division’s unit sales price is P20 and its unit variable cost is P8. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales is 10,000 units. What is the minimum transfer price that the Selling Division would be willing to accept if 3,000 units will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50. _____________________2. The Selling Division’s unit sales price is P20 and its unit variable cost is P8. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales are 7,000 units. What is the Selling Division’s opportunity cost per unit from selling 3,000 units to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50 ______________________3. The Selling Division’s unit sales price is P20 and its unit variable cost is P8. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales is…The clock division of Control Central Corporation manufactures clocks and then sells them to customers for $10 per unit. Its variable cost is $4 per unit, and its fixed cost per unit is $2.50. Management would like the clock division to transfer 8.000 of these clocks to another division within the company at a price of $5. The clock division could avoid $0.50 per clock variable packaging costs by selling internally. Required:a. Determine the minimum transfer price, assuming the clock division is not operating at full capacity and what is your interpretation of these results?b. Determine the minimum transfer price, assuming the clock division is operating at full capacity and what is your interpretation of these results?c. Why transfer pricing policy can be interpreted negatively and positively? Give an explanation!
- Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.70 per pound and costs $16.80 per pound to produce. Product D would sell for $43.20 per pound and would require an additional cost of $10.40 per pound to produce. What is the differential cost of producing Product D? Oa. $12.48 per pound Ob. $6.24 per pound Oc. $8.32 per pound Od. $10.40 per poundYasmine co. Can further process process product B to produce Product C. Product B is currently selling for $30 per pound and costs $28 per pound to produce. Product C would sell for $55 per pound and require an additional cost of $31 per pound to produce. What is the differential cost of producing product C?Holiday Corporation has two divisions, Quail and Marlin. Quail produces a widget that Marlin could use in its production. Quail's variable costs are $4.30 per widget while the full cost is $7.30. Widgets sell on the open market for $12.60 each. If Quail has excess capacity, what would be the minimum transfer price if Marlin currently is purchasing 115,000 units on the open market? Multiple Choice $5.30 $4.30 $12.60 $7.30