The following information relates to labor forThe Gear Division of Bicycle Bob produces
a speed gear that it sells to its
customers for $ per unit. Its unit
variable cost is $ and its unit fixed
cost is $ Top management of Bicycle
Bob would like the Gear Division to
transfer gears to another division
within the company at a price of $ The
Gear Division has no excess capacity to
provide the units. What is the minimum
transfer price that the Gear Division
should accept? Round answer to
decimal places eg
Minimum transfer price per unit
Pharoah Appliance Repair Shop.
The desired profit margin per hour is $ The
material loading charge is of invoice cost.
Pharoah estimates that labor hours will
be worked next year. If Pharoah repairs a
dishwasher that takes hours to repair and
uses parts that cost $ compute the bill for
the job.
