Assume the Small Components Division of Swisher Manufacturing produces a video card used in the...
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Assume the Small Components Division of Swisher Manufacturing produces a video card used in the assembly of a variety of electronic products. The division's manufacturing costs and variable selling expenses related to the video card are as fo The Computer Division of Swisher Manufacturing can use the video card produced by the Small Components Division and is interested in purchasing the video card in-house rather than buying it from an outside supplier. The Small Components Division has sufficient excess capacity with which to make the extra video cards. Because of competition, the market price for this video card is $27 regardless of whether the video card is produced by Swisher Manufacturing or another company llows: (Click the icon to view the division's manufacturing costs and variable selling expenses.) Read the requirements Requirement 1. What is the highest acceptable transfer price for the divisions? ents Division's Data Table Cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (at current production level) Variable selling expenses S 12.00 S 7.00 9.00 3.00 6.00 PrintDone
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