CourseLover

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About CourseLover

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Engineering,Health & Medical,HR Management,Law,Marketing,Math,Physics,Psychology,Programming,Science Hide all
Teaching Since: May 2017
Last Sign in: 286 Weeks Ago
Questions Answered: 27237
Tutorials Posted: 27372

Education

  • MCS,MBA(IT), Pursuing PHD
    Devry University
    Sep-2004 - Aug-2010

Experience

  • Assistant Financial Analyst
    NatSteel Holdings Pte Ltd
    Aug-2007 - Jul-2017

Category > Accounting Posted 09 Dec 2017 My Price 10.00

best use of the productive capacity

The following information is available for the two divisions of Xpert Co.:

Division A                                                              

Selling Price to outside market                         $50

Standard unit-level costs                                    $30

 

Division B

Selling Price of finished product                       $80

Standard unit-level costs for Division B           $20

 

Division A has no excess production capacity.

 

Required:

a) In order to ensure the best use of the productive capacity of A, what transfer price should be set by Division A and what effect does this transfer price have on the overall margin for the company? Is the answer goal congruent under the general rule?                                             

b) Should Division B accept a special order for its product if the selling price is reduced to $60? Use your answer from #1 and explain.

c) Would your answer to #2 change if Division A had excess capacity? Explain

Answers

CourseLover
(12)
Status NEW Posted 09 Dec 2017 04:12 PM My Price 10.00

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