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Triss [41]
3 years ago
13

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 $ 900.. The managerial accountant reported the following manufacturing costs and variable expense​ data:
Flash E - Card Manufacturing

Manufacturing Costs and Variable Expense Report

Flash Component (Bold section should be attached to list of expense data below question and solutions.)_If the highest acceptable transfer price is $ 900in 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.$ 850
B.$ 200
C.$ 120
D.$ 1,170

Business
1 answer:
Katarina [22]3 years ago
3 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Answer:

contribution margin ratio= 0.4

Break-even point (dollars)= $635,000

Explanation:

Giving the following information:

Storytime sells tickets at $ 100 per person as a​ one-day entrance fee.

Variable costs are $ 60 per​ person, and fixed costs are $254,000 per month.

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= contribution margin/selling price

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contribution margin ratio= 0.4

To calculate the sales required to break even, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 254,000/0.4

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Answer:

True

Explanation:

Labour rate (indirect cost) = $40 per hour

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Suppose China exports TVs and uses the yuan as its currency, whereas Russia exports vodka and uses the ruble. China has a stable
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Answer:

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