Assuming that the small motor division has excess capacity

Reference no: EM13610626

Allied Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Allied then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.

Fixed cost per unit$5
Variable cost per unit$8
Selling price per unit$30

Instructions

(a) Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division.

(b) Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division.

Reference no: EM13610626

Questions Cloud

How can a company that has a profit can increase its return : 1. how can a company that has a profit can increase its return on investment.2. what is an opportunity and what

A company purchased a cash register on january 1 for 5400 : a company purchased a cash register on january 1 for 5400. this register has a useful life of 10 years and a salvage

Determine if a simple supported w12 x 26 a36 steel beam : determine if a simple supported w12 x 26 a36 steel beam has the capacity to support loads that produce 50ksi of

A stone is dropped from rest from a 791-m-high bridge and : a log is floating on swiftly moving water. a stone is dropped from rest from a 79.1-m-high bridge and lands on the log

Assuming that the small motor division has excess capacity : allied companys small motor division manufactures a number of small motors used in household and office appliances. the

What must be the average speed of the person if he is to : a ball is thrown upward from the top of a 23.1-m-tall building. the balls initial speed is 11.1 ms. at the same instant

If water is available at 95 c and a 02kgs and if the : hot water from a thermal spring is proposed as the heat source for a power cycle. if water is available at 95 c and a

Assume that mucky duck uses cost-plus pricing setting the : mucky duck makes swimsuits and sells these suits directly to retailers. although mucky duck has a variety of suits it

What is the direction of the electric field at the point on : a -10.0nc point charge and a 20.0nc point charge are 15.0cm apart on the x-axis.what is the electric potential at the

User Account

All Pages