The Assembly Division of Mounds Corporation Makes a Component Part

question 5

Essay

The Assembly Division of Mounds Corporation makes a component part that the Packaging Division needs to purchase.The Assembly Division's variable cost of manufacturing the component is $25 per unit.The component is also available on the open market at a price of $52.The Packaging Division needs 800 units of the component and the Assembly Division has excess capacity of 1,000 units.
Required:
a.Calculate the total cost-based-transfer price that the Assembly division should charge the Packaging division.
b.Calculate the total market-based transfer price that the Assembly division should charge the Packaging division.

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Definitions:

Caregivers' Availability

The extent to which caregivers are accessible and present to meet the needs of those they care for, such as children or the elderly.

Cultural Norms

The shared expectations and rules that guide behavior of people within social groups.

Crying Decline

The reduction in the frequency or duration of crying as an infant matures.

New Parents

are individuals who have recently become mothers or fathers, either through birth, adoption, or assuming a parenting role.