Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2. (6 points) the laker co. and the warrior co. ar

2. (6 points) The Laker Co. and the Warrior Co. are both subsidiary companies owned...

50.1K

Verified Solution

Question

Accounting

image

2. (6 points) The Laker Co. and the Warrior Co. are both subsidiary companies owned by the NBA Jam Co. The Laker Co. makes a product called the "Brick" with a variable cost per unit of $9 and total fixed expenses of $400,000. The Laker Co. can sell the product to other companies for $18. The Laker Co. has a capacity of 10,000 units, but is currently selling 9,000 units to outside companies (thus, there is idle capacity of 1,000 units).The Warrior Co. uses the "Brick" in one of its products called the "Championship". The Warrior Co. can buy the "Brick" from an outside company for $16 per unit. If the Warrior Co. needs 2,000 units of the "Brick", what would be the range of acceptable transfer prices between the Laker Co. and the Warrior Co.? ie Warrior Co. can buy the "Brck" company for

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

one mole of ice at 0 C is turned completely into steam by heating under 1...

Physics
1.2K views

A wedge free to move of mass M has one face making an angle a...

Physics
1.2K views

Sec 6 3 Consider a block with a mass of 1 82 kg that is...

Basic Math
1.2K views

If f 0 tan 0 7 find f 0 f 0 x Simplify your answer

Statistics
1.2K views

8 pts The height of a certain plant after 1 week ranges from 1 cm...

Accounting
1.2K views

The following list of accounts were provided for Tata Motors Inc. in their Annual Report...

Accounting
1.2K views

Knowledge Check 01 Which of the following describes the effect of a stock...

Accounting
1.2K views

When an asset is bought or sold in a foreign country is supposed to be...

Accounting
1.2K views

Damon Manufacturing is preparing its master budget for the first quarter of the upcoming year....

Accounting
1.2K views

Consider Corp X is introducing a product on a trial basis and the cost is...

Accounting
1.2K views

35. (Ignore income taxes in this problem.) Sam Weller is thinking of investing $70,000 to...

Accounting
1.2K views

I want a detailed answer to every question withe the balance sheet ABC company...