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Answer the following questions using the information below:
Branded Shoe Company manufactures only one type of shoe and has two divisions, the Stitching Division and the Polishing Division. The Stitching Division manufactures shoes for the Polishing Division, which completes the shoe and sells it to retailers. The Stitching Division "sells"shoes to the Polishing Division. The market price for the Polishing Division to purchase a pair of shoes is $42. (Ignore changes in inventory.) The fixed costs for the Stitching Division are assumed to be the same over the range of 40,000-100,000 units. The fixed costs for the Polishing Division are assumed to be $14 per pair at 100,000 units.
Stitching's costs per pair of soles are:
Polishing's costs per completed pair of shoes are:
-What is the transfer price per pair of shoes from the Stitching Division to the Polishing Division if the transfer price per pair of soles is 125% of full costs?
Financial Performance
A measure of how well a firm can use assets from its primary mode of business and generate revenues, indicating the company’s financial health, profitability, and growth over a certain period.
Performance-Driven Cultures
Organizational environments that prioritize measurable results and rewards based on performance achievements.
HRM System
Human Resource Management System; an intersection of human resources and information technology through HR software, enabling better data management and HR processes.
Monitoring
The systematic process of observing or checking work performance or processes over time for the purpose of ensuring compliance with standards.
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