Daytona,Inc A the Maximum Transfer Price Per Litre of Paint Is

question 35

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:
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).
$\begin{array}{lr}\text { Direct materials } & \$ 2,101.10 \\\text { Direct labour } & 1,451.45 \\\text { Variable overhead } & 1,900.90 \\\text { Fixed overhead } & 2,151.15 \\\text { Total } & \$ 7,604 .60\end{array}$ 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:

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The adequacy of evidence or legal grounding in an agreement, claim, or defense that meets minimum legal standards to proceed or withstand scrutiny in a court of law.

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Promissory estoppel is a legal doctrine that can enforce a promise in the absence of a formal contract when a party has relied on that promise to their detriment.