Plank IncHas a Division That Makes Paint and Another Division That

question 75

Essay

Plank Inc.has a division that makes paint and another division that constructs subdivisions.The paint division incurs the following costs for one litre of paint: $\begin{array}{lr}\text { Direct materials } & \$ 1.10 \\\text { Direct labour } & 1.45 \\\text { Variable overhead } & 0.90 \\\text { Fixed overhead } & 1.15 \\\text { Total } & \$ 4.60\end{array}$ The Paint Division can make 1,000,000 L per year,and expects to produce 800,000 L next year.The Construction Division currently buys 200,000 L of paint from an outside supplier for $5.30 per litre (the same price that the Paint Division receives). A. The maximum transfer price per litre of paint is $\$\_\_\_\_$ .
B. The minimum transfer price per litre of $p$ aint is $\$\_\_\_\_$ .
C. Assume that the transfer takes place at $\$ 5$ per litre; calcul ate the amount by which each of
the following will be better off with the transfer than without it.
Paint Division: $\$\_\_\_\_$
Construction Division: $\$\_\_\_\_$
Plank, Inc., as a whole: $\$\_\_\_\_$

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Sodium Ions

Positively charged particles of sodium, essential for conducting nerve impulses and muscle contraction in the body.

Cell Body

The spherical part of a neuron that contains the nucleus and connects to the dendrites, which bring information to the neuron, and the axon, which sends information to other neurons.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body.

Genetic Information

Data about an organism's genes, including variations and mutations, that can influence health, traits, and disease risk.