Multiple choices 150,000(x) = 117,000,000

1. A. Selling price = 780

2. B.
3. D.
4. C. 3.) {(x) (150,000) - (500) (150,000)-
5. C. 30,000,000} - (.20) 48,000,000
6. B.
=0
7. C.
8. D.
9. C. (x) (150,000)-75,000,000-
10. B.
30,000,000-9,600,000
Problem =0
Sport company:
Required: 150,000(x)-114,600,000
1.) 3,000,000/48,000,000 =0
= 6.250%
X= 114,600,000/150,000
= 720*150,000-500*150,000- Selling price = 764
30,000,000
= 220*150,000-30,000,000 GreenThumb, Inc.:
= 33,000,000-30,000,000 Required:
=3,000,0000 1.)  If flint can sell all the product
2.) {(x) (150,000) - (500) (150,000)- to the outside customers
30,000,000}/48,000,000 (market), he shouldn't accept
= 2.5 the Nay’s request to reduce
the price. Because if flint can
(x) (150,000)-75,000,000- sell all the product at price
30,000,000 $75, he will get the optimum
=48,000,000 (2.5) profit. But, if he accepts the
Rosario's request, he only can
150,000(x)- 75,000,000- sell the product at price $70.
30,000,000
2.) To produce 1-unit plastic pot,
=12,000,000
the firm need variable cost:
 Direct materials $35
Direct labor 8
Variable overhead 10
Total Variable Cost 53

So, the minimum price is

$53 The maximum price as
much market price is $75. But,
the ideal price for both division
is:70+(75-70)/2=72,5
Lorne should consider to
accept the Rosario's request
because the income will
increase by:
[3.500(70-53)] =59.500

3.) If the price be set at full cost

plus 20%, the cost would be:
= Full Cost +Mark up = 63 +
(20% X 63) = $75,6 No,
transfer price will not occur.
Because the price higher than
the market price. So, Rosario
better buy the product to the
market.