The Carla Vista Company is a multidivisional company. Its managers have full responsibility for profits...
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The Carla Vista Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market Division B currently uses this sub-assembly for a final product that is sold outside at $1.416. Division A charges Division B the market price of $826 per unit of the part. Unit variable costs are $614 and $708 for Divisions A and B, respectively. The manager of Division B feels that Division A should transfer the part at a lower price than market because at market Division B is unable to make a profit. (a) Calculate Division B's contribution marginif transfers are made at the market price and calculate the comparty's total centribution margin. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) Division B's contribution margin $ Company's total contribution margin $ Seve for eter Attempts: 0 of 1 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above
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