Daytona,Inc The Paint Division Can Make 1,000,000 L Per Year and Constructs

question 12

Essay

Daytona,Inc.has a division that makes paint and another division that constructs subdivision houses.The paint division incurs the following costs for one litre of paint: $$\begin{array} { l r } \text { Direct materials } & \$ 2,101.10 \\\text { Direct labour } & 1,451.45 \\\text { Variable overhead } & 1,900.90 \\\text { Fixed overhead } & 2,151.15 \\\text { Total } & \$ 7,604,60\end{array}$$ The Paint Division can make 1,000,000 L per year and is at capacity.The Construction Division currently buys its paint from an outside supplier for $8.20 per litre (the same price that the Paint Division receives). A. The maximum transfer price per litre of paint is $\$\_\_\_\_$ This price is set by which of the two divisions?
B. The minimum transfer price per litre of $p$ aint is $\$\_\_\_\_$ This price is set by which of the two divisions?

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Definitions:

Expressive

Pertaining to the conveyance of thoughts, feelings, or emotions openly and effectively through various forms of communication.

Sexual Contact

Sexual contact involves physical interaction of a sexual nature between individuals, including behaviors ranging from touching to intercourse.

Biological Father

The man from whom one has inherited half of their DNA and is their parent by nature rather than by adoption or upbringing.

Marginalized

The state of being placed in a position of insignificance or marginal importance within a society or group, often leading to limited access to resources and opportunities.