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Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products. (Click the icon to view additional information.) Read the requirements. Requirement 1. What is the highest acceptable transfer price for the divisions? The highest acceptable transfer price for the divisions is the Small Components Division's Requirements More info 1. What is the highest acceptable transfer price for the divisions? 2. Assuming the transfer price is negotiated between the divisions of the company, what would be the lowest acceptable transfer price? Assume variable selling expenses pertain to outside sales only. 3. Which transfer price would the manager of the Small Components Division prefer? Which transfer price would the manager of the Computer Division prefer? 4. If the company's policy requires that all in-house transfers must be priced at full absorption cost plus 12%, what transfer price would be used? Assume that the increased production level needed to fill the transfer would result in fixed manufacturing overhead decreasing by $2.00 per unit. (Round your answer to the nearest cent.) 5. If the company's policy requires that all in-house transfers must be priced at total manufacturing variable cost plus 24%, what transfer price would be used? Assume that the company does not consider fixed manufacturing overhead in setting its internal transfer price in this scenario. The Computer Division of Martin Manufacturing can use the video card produced (Round your answer to the nearest cent.) by the Small Components Division and is interested in purchasing the video 6. Assume now that the company does incur the variable selling expenses on internal transfers. If card in-house rather than buying it from an outside supplier. The Small the company policy is to set transfer prices at 101% of the sum of the full absorption cost and the Components Division has sufficient excess capacity with which to make the extra variable selling expenses, what transfer price would be set? Assume that the fixed manufacturing video cards. Because of competition, the market price for this video card is $30 overhead would drop by $2.00 per unit as a result of the increased production resulting from the regardless of whether the video card is produced by Martin Manufacturing or internal transfers. (Round your answer to the nearest cent.) another company

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