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Riverbed's Division A produces a product that can be sold for $195 or...

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Accounting

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Riverbed's Division A produces a product that can be sold for $195 or transferred to Division B as a component for its product. Division B can buy the part from another suppler at $175. In the current period Division B purchased 1,200 units from Division A. Data on a per-unit basis followe Selling price Variable cost Allocated fixed cost Division A Division B $195 $631 203 162 90 95 The variable cost in Division B does not include the cost of the component provided by Division A or the outside supplier. Calculate the minimum transfer price if Division A is operating at capacity. Minimum transfer price Calculate the minimum transfer price if Division A is operating below capacity. Minimum transfer price Calculate the effect on the company s contribution margin Division A has excess capacity and Division B buys 1 200 units from the outside supplier -500 or (500).) Show a negative amount preceded by am uss gn, eg. Effect on contribution margin

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