Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. avery company has two divisions, polk and bishop.

Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could...

60.1K

Verified Solution

Question

Accounting

image
Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currently is purchasing 25,000 units from an outside supplier for $16 per unit Polk is currently operating at less than its full capacity of 610,000 units and has variable costs of $7 per unit The full cost to manufacture the unit is $11. Polk currently sells 460,000 units at a selling price of $18 per unit a. What will be the effect on Avery Company's operating proft fthe transfer is made internally? b. What is the minimum transfer price from Polk's perspective? c. What is the maximum transfer price from Bishop's perspective? O Type here to search

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Sie 1 Bop Explain the specitic cause and ettect relationship between the tactors and the...

Biology
Q

When interviewing for jobs, you're interviewing the organizations as much as they are interviewing you. Is...

General Management
Q

DNA holds the code for protein lipids carbohydra

Biology
Q

What results when a single bacterium reproduces a One parent cell and a genetically different...

Biology
Q

The figure shows a frictionless cylindrical piston that seals and floats freely on compressed gas...

Physics
Q

Solve the equation x + 2x - 5x-6=0 given that 2 is a zero of...

Basic Math
Q

Hansen Company provided the following selected information about its consumer products division for 2012: ...

Accounting
Q

On July 1, 2010, Winter Wonderland Company purchased for $2,160,000 snow-making equipment having...

Accounting
Q

1. The Hass Machinery Company has told you that they will sell you a CNC...

Accounting
Q

Bordro ve bor ykmllklerini yerine getirmekte glk eken, ancak sektr standartlarna uygun cari rasyoya sahip...

Finance
Q

If you deposit $1000 in one year, $2000 in two years and $3000 in three...

Finance
Q

Fayetteville Hardware uses an aging schedule to determine the amount to set aside for bad...

Accounting