Verbose village is a publishing company with a number of

Reference no: EM13606204

Verbose Village is a publishing company with a number of different book lines. Each line has contracts with a number of different authors. The company also owns a printing operation called Quick Press. The book lines and the printing operation each operate as a separate profit center. The printing operation earns revenue by printing books by authors under contract with the book lines owned by Verbose Village, as well as authors under contract with other companies. The printing operation bills out at $0.010 per page, and a typical book requires 522 pages of print. A manager from Business Books, one of the Verbose Village's book lines, has approached the manager of the printing operation offering to pay $0.0071 per page for 1,120 copies of a 522-page book. The book line pays outside printers $0.0088 per page. The printing operation's variable cost per page is $0.0058.Determine whether the printing should be done internally or externally, and the appropriate transfer price, under each of the following situations.

Reference no: EM13606204

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