The trailer division of baxter bicycles makes bike trailors that attach to bicycles and can carry children or cargo. The trailers have a retail price of $98 each. Each trailer incurs $43 of variable manufacturing costs. The Trailer division has capacity for 25,000 trailers per year and incurs fixed costs of $570,000 per year Required:
a. Assume the Assembly division of Baxter Bicycles wants to buy 4,900 trailers per year from the Trailer If the Trailer division can sell all Of the trailers it manufactures to outside customers, what price should be used on transfers
between Baxter Bicycles' divisions?
b. Assume the Trailer division currently only sells 10,200 trailers to outside customers, and the Assembly division wants to buy 4,900 trailers per year from the Trailer division. What is the range of acceptable prices that could be used on
transfers between Baxter Bicycles' divisions?

Miller mfg. is analyzing a proposed project. the company expects to sell 8,000 units, plus or minus 2 percent. the expected variable cost per unit is $11 and the expected fixed costs are $287,000. the fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. the depreciation expense is $68,000. the tax rate is 32 percent. the sales price is estimated at $64 a unit, plus or minus 3 percent. what is the earnings before interest and taxes under the base case scenario?

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?