Flash E-Card Manufacturing manufactures software parts for the computer software systems that produce e-cards. The Flash II part is currently manufactured in the Computer Department
The Data Department also produces the part and the plant has excess capacity to produce the Flash II part. The current market price of the Flash II part is $600. The managerial accountant reported the following manufacturing costs and variable expense data:
If the highest acceptable transfer price is $600 in the market, what is the lowest acceptable in-house price the Data Department should receive to produce the part in-house at the Computer Department?
A) $110
B) $120
C) $840
D) $1,070
D
Explanation: D) [$840 + $110 + $120] = $1,070
You might also like to view...
Freedom norms provide the order in business relationships that permits predictable plans to be effective
Indicate whether the statement is true or false
An example of a primary market transaction involving a money-market security is
A) a new issue of a security with a very long maturity. B) the transfer of a previously-issued security with a very long maturity. C) a new issue of a security with a very short maturity. D) the transfer of a previously-issued security with a very short maturity.