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Author Question: Springer Company produces and sells home-ground wheat flour. The flour mill division sells to the ... (Read 34 times)

jlbond23

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on: Feb 5, 2023
Springer Company produces and sells home-ground wheat flour. The flour mill division sells to the general public in its outlet store located at the mill. The mill division also is the supplier of flour for its bakery division located across the street from the flour mill. The following information has been collected by Springer's controller for the flour mill division:

Production capacity   20,000 pounds
Selling price$0.90 per pound
Variable production cost$0.20 per pound
Variable selling cost$0.08 per pound

The bakery needs 6,000 pounds of flour. If the flour mill transfers flour to the bakery, it can avoid $0.03 of the variable selling cost.

Required:

a.If the flour mill can only sell 12,000 pounds at its outlet store to outside customers,
what is
the lowest acceptable transfer price per pound that the flour mill division should accept?
b.If the flour mill can sell all 20,000 pounds at its outlet store to outside customers,
what is
the lowest acceptable transfer price per pound the flour mill division should accept?
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by jlbond23 on Feb 5, 2023

Yermi196

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jlbond23

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Reply 2 on: Feb 5, 2023
Excellent

amit

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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