E24-19 (book/static) The Watkins Company is decentralized, and divisions are considered investment centers. Watkins specializes...
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E24-19 (book/static) The Watkins Company is decentralized, and divisions are considered investment centers. Watkins specializes in sports equipment, and one division manufactures netting that is used for basketball hoops, soccer goals, and other sports equipment. The Netting Division reports the following information for a heavy-duty basketball hoop net: E: (Click the icon to view the data.) Requirement 1. Determine the negotiable range for the transfer price. The negotiable range for the transfer price is to The Basketball Equipment Division can purchase a similar heavy-duty net from an outside vendor for $15. Read the requirements A Netting Division Information - X 1 Requirements X $ 18 Sales Price per Unit Variable Cost per Unit 1. Determine the negotiable range for the transfer price. 2. What is the minimum transfer price the Netting Division should consider if operating at capacity? Below capacity? What is the maximum transfer price the Basketball Equipment Division should consider? Contribution Margin per Unit Print Done Print Done
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