Riverbed's Division A produces a product that can be sold for $195 or...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Riverbed's Division A produces a product that can be sold for $195 or transferred to Division B as a component for its product. Division B can buy the part from another suppler at $175. In the current period Division B purchased 1,200 units from Division A. Data on a per-unit basis followe Selling price Variable cost Allocated fixed cost Division A Division B $195 $631 203 162 90 95 The variable cost in Division B does not include the cost of the component provided by Division A or the outside supplier. Calculate the minimum transfer price if Division A is operating at capacity. Minimum transfer price Calculate the minimum transfer price if Division A is operating below capacity. Minimum transfer price Calculate the effect on the company s contribution margin Division A has excess capacity and Division B buys 1 200 units from the outside supplier -500 or (500).) Show a negative amount preceded by am uss gn, eg. Effect on contribution margin
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!
