Annual

District # of Stores Revenue Annual ROS Profit/Store

($) Profit ($) ($) 600,000
D1 5 3,926,503 1,050,686 26.8% 210,137 500,000
D2 4 3,749,256 1,165,390 31.1% 291,348 400,000
D3 6 5,568,574 1,769,757 31.8% 294,960 300,000
D4 5 3,690,913 1,217,799 33.0% 243,560 200,000
D5 6 6,159,927 2,212,114 35.9% 368,686
100,000
D6 4 4,927,492 2,056,521 41.7% 514,130
0
30 28,022,665 9,472,267 33.8% 315,742 0
↓ ↓
Home/ConditionalFormatting
 Ave Profit per Store ($)
600,000
500,000
400,000
300,000
200,000
100,000
0
0 1 2 3 4 5 6 7

Ave Profit per Store and ROS per District

600,000

500,000 41.7%

400,000
35.9%
ROS
Profit

300,000 31.1% 31.8%

33.0% 514,130 Ave Profit per Store
200,000 26.8% 368,686
291,348 294,960
243,560
100,000 210,137

0
1 2 3 4 5 6
Districts
Desert Adventures

Price: $ 4,000 Price: $ 4,000 Price: $ 3,888

Variable cost: $ 1,200 Variable cost: $ 1,200 Variable cost: $ 1,200
Fixed cost: $ 134,400 Fixed cost: $ 134,400 Fixed cost: $ 134,400

Profit: $ (22,400) Profit: $ - Profit: $ -

Volume: $ 40 Volume $ 48 Volume $ 50
Quantity 100 120

Cost to operate internally

Fixed cost $ 48,000 $ 48,000
Variable cost $ 1,000 $ 1,000
Total cost to operate internally $ 148,000 $ 168,000

Cost to outsource
Fixed cost $ - $ -
Variable cost $ 1,400 $ 1,400
Total cost to outsource $ 140,000 $ 168,000

Difference (cost to operate internally - cost tp outsource) $ 8,000 $ -

 Metal Frames Wood Frames
Price $ 50 $ 80
Less variable costs per unit
Material $ 8 $ 22
Labor $ 8 $ 24
Overhead $ 4 $ 4
Contribution margin per unit $ 30 $ 30

Fixed costs Total

Manufacturing $ 300,000
Marketing and administrative $ 150,000
$ 450,000

Machine hours per unit 0.5 1.0

Machine hours used 7,500 12,500 20,000
Machine hours available 20,000

Quantity 15,000 12,500

Profit $ 375,000
 Metal Frames Wood Frames
Price $ 50 $ 80
Less variable costs per unit
Material $ 8 $ 22
Labor $ 8 $ 24
Overhead $ 4 $ 4
Contribution margin per unit $ 30 $ 30

Fixed costs Total

Manufacturing $ 300,000
Marketing and administrative $ 150,000
$ 450,000

Machine hours per unit 0.5 1.0

Machine hours used 7,500 12,500 20,000
Machine hours available 20,000

Quantity - -

Profit $ (450,000)
 Metal Frames Wood Frames
Price $ 50 $ 80
Less variable costs per unit
Material $ 8 $ 22
Labor $ 8 $ 24
Overhead $ 4 $ 4
Contribution margin per unit $ 30 $ 30

Fixed costs Total

Manufacturing $ 300,000
Marketing and administrative $ 150,000
$ 450,000

Machine hours per unit 0.5 1.0

Machine hours used 7,500 12,500 20,000
Machine hours available 20,000

Quantity 15,000 12,500

Profit $ 375,000
 Metal Frames Wood Frames
Price $ 50 $ 80
Less variable costs per unit
Material $ 8 $ 22
Labor $ 8 $ 24
Overhead $ 4 $ 4
Contribution margin per unit $ 30 $ 30

Fixed costs Total

Manufacturing $ 300,000
Marketing and administrative $ 150,000
$ 450,000

Machine hours per unit 0.5 1.0

Machine hours used 7,500 12,500 20,000
Machine hours available 20,000

Quantity 40,000 0 0 -

Profit $ 750,000
C20 target is set to $750,000 because the maximum profit is obtainable based on maximum contribution per
constrained resource which is metal frames (0.5 machine hr per frame). 20,000 mhrs/0.5 = 40,000 units
Month Overhead Costs ($) Labor-hours Material Costs ($)
1 38,910 496 2,130
2 35,797 496 2,904
3 59,921 960 7,000
4 43,319 568 3,136
5 35,612 400 3,088
6 41,737 760 2,444
7 55,581 1,136 5,972
8 41,645 688 3,682
9 44,844 896 3,308
10 56,508 1,088 4,200
11 43,428 680 2,490
12 55,852 824 5,400
13 44,881 768 4,400
14 58,050 808 6,220
15 30,297 424 1,504
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.950730787 Corrolation coefficient: Linear relatioship between overhead costs and Labor hours and M
R Square 0.903889029 Coefficient of determination: 90% of changes in Overhead Costs can be explained by chan
The percent of the total variance t
Adjusted R Square 0.887870533
Standard Error 3099.911239
Observations 15

ANOVA
df SS MS F Significance F
Regression 2 1084480910.112 542240455.1 56.4278364 7.882025E-07
Residual 12 115313396.2882 9609449.691
Total 14 1199794306.4

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept 19,893.6638 2,773.0851 7.1738 0.0000 13,851.6304 25,935.6972
Labor-hours 17.83857552 5.131435896365 3.476332138 0.00457721 6.6581371559 29.01901389
Material Costs 3.315515765 0.717839473733 4.618742611 0.000591473 1.7514779104 4.87955362

Y = 19,894 + 17.8LHRS + 3.3MC t statistic (Coefficient/Standard Error) > 2, that means LHRS and MC a
P value is close to zero means the probability of coefficient values bei
 and Labor hours and Material Cost are strong. The dots are close to the regression line.
an be explained by changes in Labor hours and material costs.
t of the total variance that can be explained by the regression.

Lower 95.0% Upper 95.0%

13,851.6304 25,935.6972
6.6581371559 29.019013887
1.7514779104 4.8795536204

t means LHRS and MC are strong indicators of Overhead Cost and they are not fixed type of costs.
of coefficient values being zero is zero.
Unit Produced Labor Time Required to Produce the Xth
Total Cost
(X) Unit (i.e. the last single unit produced) Y Cumulative Total Time
in Labor Hours
1 100.00 100.00 $ 5,000.00
2 80.00 180.00 $ 9,000.00
3 70.21 250.21 $ 12,510.52
4 64.00 314.21 $ 15,710.52
5 59.56 373.77 $ 18,688.71
6 56.17 429.94 $ 21,497.12
7 53.45 483.39 $ 24,169.57
8 51.20 534.59 $ 26,729.57

Labor cost per hour: $ 50.00

Average Cost Exponential
Per Unit Power

$ 5,000.00 -0.32192809
$ 4,500.00 -0.32192809
$ 4,170.17 -0.32192809
$ 3,927.63 -0.32192809
$ 3,737.74 -0.32192809
$ 3,582.85 -0.32192809
$ 3,452.80 -0.32192809
$ 3,341.20 -0.32192809
Flow of Units (quantity only) Physical Units Equivalent Units Equivalent Units
Material Conversion
Units to be accounted for:
Beginning-BWIP inventory:
Units started in this period:
Total units to account for:

Units accounted for:

Units completed and transferred out :
Units in ending inventory-EWIP:
Total units accounted for:

Flow of Costs (currency only) Total Material Cost Conversion Cost

Costs to be accounted for:

Costs begininning-BWIP inventory:
Current period costs:
Total costs to be account for:

Costs per equivalent unit:

Materials:
Conversion:

Costs accounted for:

Costs assigned to units transferred out:
Cost of ending WIP inventory:
Total costs accounted for:

Units (S+C) = Units C – BWIP (physical flow)

Units S = Units (S+C) + EWIP (physical flow)
Flow of Units (quantity only) Physical Units Equivalent Units Equivalent Units
Material Conversion
Units to be accounted for:
Beginning-BWIP inventory:
Units started in this period:
Total units to account for:

Units accounted for:

Completed and transferred out:
Units from beginning WIP inventory:
Materials:
Conversion:
Started and Completed within the period:
Units in ending WIP inventory:
Materials:
Conversion:
Total units accounted for:

Flow of Costs (currency only) Total Material Cost Conversion Cost

Costs to be accounted for:

Costs begininning-BWIP inventory:
Current period costs:
Total costs to be accounted for:

Cost per equivalent unit:

Materials:
Conversion:

Costs accounted for:

Costs assigned to units transferred out:
Costs from beginning WIP inventory:
Current costs added to complete BWIP:
Materials:
Conversion:
Cost of units started and completed
Materials:
Conversion:
Total costs transferred out:
Cost of ending WIP inventory:
Materials:
Conversion:
Total costs accounted for:

Units (S+C) = Units C – BWIP (physical flow)

Units S = Units (S+C) + EWIP (physical flow)
 100e^-q
q Cost=q^2 e=2.71828 Conf. + Non-Conf.
Quality Measure Conformance Non-Conformance Total
0.10 0.01 90.5 90.49
0.20 0.04 81.9 81.91
0.30 0.09 74.1 74.17
0.40 0.16 67.0 67.19
0.50 0.25 60.7 60.90
0.60 0.36 54.9 55.24
0.70 0.49 49.7 50.15
0.80 0.64 44.9 45.57
0.90 0.81 40.7 41.47
1.00 1.00 36.8 37.79
1.10 1.21 33.3 34.50
1.20 1.44 30.1 31.56
1.30 1.69 27.3 28.94
1.40 1.96 24.7 26.62
1.50 2.25 22.3 24.56
1.60 2.56 20.2 22.75
1.70 2.89 18.3 21.16
1.80 3.24 16.5 19.77
1.90 3.61 15.0 18.57
2.00 4.00 13.5 17.53
2.10 4.41 12.2 16.66
2.20 4.84 11.1 15.92
2.30 5.29 10.0 15.32
2.40 5.76 9.1 14.83
2.50 6.25 8.2 14.46
2.60 6.76 7.4 14.19
2.70 7.29 6.7 14.01
2.80 7.84 6.1 13.92
2.90 8.41 5.5 13.91
3.00 9.00 5.0 13.98
3.10 9.61 4.5 14.11
3.20 10.24 4.1 14.32
3.30 10.89 3.7 14.58
3.40 11.56 3.3 14.90
3.50 12.25 3.0 15.27
3.60 12.96 2.7 15.69
3.70 13.69 2.5 16.16
3.80 14.44 2.2 16.68
3.90 15.21 2.0 17.23
4.00 16.00 1.8 17.83
4.10 16.81 1.7 18.47
4.20 17.64 1.5 19.14
4.30 18.49 1.4 19.85
4.40 19.36 1.2 20.59
4.50 20.25 1.1 21.36
4.60 21.16 1.0 22.17
4.70 22.09 0.9 23.00
4.80 23.04 0.8 23.86
4.90 24.01 0.7 24.75
5.00 25.00 0.7 25.67
5.10 26.01 0.6 26.62
5.20 27.04 0.6 27.59
5.30 28.09 0.5 28.59
5.40 29.16 0.5 29.61
5.50 30.25 0.4 30.66
5.60 31.36 0.4 31.73
5.70 32.49 0.3 32.82
5.80 33.64 0.3 33.94
5.90 34.81 0.3 35.08
6.00 36.00 0.2 36.25
6.10 37.21 0.2 37.43
6.20 38.44 0.2 38.64
6.30 39.69 0.2 39.87
6.40 40.96 0.2 41.13
6.50 42.25 0.2 42.40
6.60 43.56 0.1 43.70
6.70 44.89 0.1 45.01
6.80 46.24 0.1 46.35
6.90 47.61 0.1 47.71
7.00 49.00 0.1 49.09
7.10 50.41 0.1 50.49
7.20 51.84 0.1 51.91
7.30 53.29 0.1 53.36
7.40 54.76 0.1 54.82
7.50 56.25 0.1 56.31
7.60 57.76 0.1 57.81
7.70 59.29 0.0 59.34
7.80 60.84 0.0 60.88
7.90 62.41 0.0 62.45
8.00 64.00 0.0 64.03
8.10 65.61 0.0 65.64
8.20 67.24 0.0 67.27
8.30 68.89 0.0 68.91
8.40 70.56 0.0 70.58
8.50 72.25 0.0 72.27
8.60 73.96 0.0 73.98
8.70 75.69 0.0 75.71
8.80 77.44 0.0 77.46
8.90 79.21 0.0 79.22
9.00 81.00 0.0 81.01
9.10 82.81 0.0 82.82
9.20 84.64 0.0 84.65
 9.30 86.49 0.0 86.50
9.40 88.36 0.0 88.37
9.50 90.25 0.0 90.26
9.60 92.16 0.0 92.17
9.70 94.09 0.0 94.10
9.80 96.04 0.0 96.05
9.90 98.01 0.0 98.02
10.00 100.00 0.0 100.00
10.10 102.01 0.0 102.01
10.20 104.04 0.0 104.04
10.30 106.09 0.0 106.09
10.40 108.16 0.0 108.16
10.50 110.25 0.0 110.25
10.60 112.36 0.0 112.36
10.70 114.49 0.0 114.49
10.80 116.64 0.0 116.64
10.90 118.81 0.0 118.81
11.00 121.00 0.0 121.00
 Chaefer Manufacturing
Cost of Quality as a Function of Quality (q)
$120.00

$100.00

$80.00

$60.00

$40.00

$20.00

$0.00
0.1 1.1 2.1 3.1 4.1 5.1 6.1 7.1 8.1 9.1 10.1 11.1 12.1

Conformance Non-Conformance Total

Panel A: Basic Data

Service Department Usage Matrix (S)

(Percentage Use)
(Positive Numbers: Provide Service - Negative Numbers: Use Service)
From Dept:
Info Adm Sierra Cascades
To Dept:
Info 100% -20% 0% 0%
Adm -50% 100% 0% 0%
Sierra -10% -50% 100% 0%
Cascades -40% -30% 0% 100%
Total 0% 0% 100% 100%

Panel B: Department Costs After Reciprocal Service Costs

Direct
Inverse of ServiceMatrix (S-Inv) Department
Cost
Info 111.11% 22.22% 0.00% 0.00% $800,000
Adm 55.56% 111.11% 0.00% 0.00% $5,000,000 =
Sierra 38.89% 57.78% 100.00% 0.00% $0
Cascades 61.11% 42.22% 0.00% 100.00% $0

Panel C: Alternative Presentation

Allocation

Department Info Admin Sierra Cascades

Info $ 2,000,000 0.00% 50.00% 10.00% 40.00% 100.00%
Admin $ 6,000,000 20.00% 0.00% 50.00% 30.00% 100.00%

Direct Costs $ 800,000 $ 5,000,000 $ - $ - $ 5,800,000

Info Syst. $ (2,000,000) $ 1,000,000 $ 200,000 $ 800,000 $ -
Admin. $ 1,200,000 $ (6,000,000) $ 3,000,000 $ 1,800,000 $ -
Final Allocations $ - $ - $ 3,200,000 $ 2,600,000 $ 5,800,000
 Allocated
Cost
$ 2,000,000
$ 6,000,000
$ 3,200,000 ← Reciprocal
$ 2,600,000 ← Allocations
 Canyon Diaries` Contribution

Final Market Price 0 5 10 15 20 25 30 35

$40 0 0 0 0 0 0 0 0
$42 0 0 0 0 0 0 0 0
$44 0 0 0 0 0 0 0 0
$46 0 0 0 0 0 0 0 0
$48 0 0 0 0 0 0 0 0
$50 0 0 0 0 0 0 0 0
$52 -200 -200 -200 -200 200 -200 -200 -200
$54 -400 -400 -400 -400 400 -400 -400 -400
$56 -600 -600 -600 -600 600 600 -600 -600
$58 -800 -800 -800 -800 800 800 -800 -800
$60 -1,000 -1,000 -1,000 -1,000 1,000 1,000 1,000 -1,000
$62 -1,200 -1,200 -1,200 -1,200 1,200 1,200 1,200 -1,200
$64 -1,400 -1,400 -1,400 -1,400 1,400 1,400 1,400 -1,400
$66 -1,600 -1,600 -1,600 -1,600 1,600 1,600 1,600 1,600
$68 -1,800 -1,800 -1,800 -1,800 1,800 1,800 1,800 1,800
$70 -2,000 -2,000 -2,000 -2,000 2,000 2,000 2,000 2,000
$72 -2,200 -2,200 -2,200 -2,200 2,200 2,200 2,200 2,200
$74 -2,400 -2,400 -2,400 -2,400 2,400 2,400 2,400 2,400
$76 -2,600 -2,600 -2,600 -2,600 2,600 2,600 2,600 2,600
$78 -2,800 -2,800 -2,800 -2,800 2,800 2,800 2,800 2,800
$80 -3,000 -3,000 -3,000 -3,000 3,000 3,000 3,000 3,000
$82 -3,200 -3,200 -3,200 -3,200 3,200 3,200 3,200 3,200
$84 -3,400 -3,400 -3,400 -3,400 3,400 3,400 3,400 3,400
$86 -3,600 -3,600 -3,600 -3,600 3,600 3,600 3,600 3,600
$88 -3,800 -3,800 -3,800 -3,800 3,800 3,800 3,800 3,800
$90 -4,000 -4,000 -4,000 -4,000 4,000 4,000 4,000 4,000
$92 -4,200 -4,200 -4,200 -4,200 4,200 4,200 4,200 4,200
$94 -4,400 -4,400 -4,400 -4,400 4,400 4,400 4,400 4,400
$96 -4,600 -4,600 -4,600 -4,600 4,600 4,600 4,600 4,600
$98 -4,800 -4,800 -4,800 -4,800 4,800 4,800 4,800 4,800
$100 -5,000 -5,000 -5,000 -5,000 5,000 5,000 5,000 5,000
$102 -5,200 -5,200 -5,200 -5,200 5,200 5,200 5,200 5,200
$104 -5,400 -5,400 -5,400 -5,400 5,400 5,400 5,400 5,400
$106 -5,600 -5,600 -5,600 -5,600 5,600 5,600 5,600 5,600
$108 -5,800 -5,800 -5,800 -5,800 5,800 5,800 5,800 5,800
$110 -6,000 -6,000 -6,000 -6,000 6,000 6,000 6,000 6,000
$112 -6,200 -6,200 -6,200 -6,200 6,200 6,200 6,200 6,200
$114 -6,400 -6,400 -6,400 -6,400 6,400 6,400 6,400 6,400
$116 -6,600 -6,600 -6,600 -6,600 6,600 6,600 6,600 6,600
$118 -6,800 -6,800 -6,800 -6,800 6,800 6,800 6,800 6,800
$120 -7,000 -7,000 -7,000 -7,000 7,000 7,000 7,000 7,000
$122 -7,200 -7,200 -7,200 -7,200 7,200 7,200 7,200 7,200
$124 -7,400 -7,400 -7,400 -7,400 7,400 7,400 7,400 7,400
$126 -7,600 -7,600 -7,600 -7,600 7,600 7,600 7,600 7,600
$128 -7,800 -7,800 -7,800 -7,800 7,800 7,800 7,800 7,800
$130 -8,000 -8,000 -8,000 -8,000 8,000 8,000 8,000 8,000
$132 -8,200 -8,200 -8,200 -8,200 8,200 8,200 8,200 8,200
$134 -8,400 -8,400 -8,400 -8,400 8,400 8,400 8,400 8,400
$136 -8,600 -8,600 -8,600 -8,600 8,600 8,600 8,600 8,600
$138 -8,800 -8,800 -8,800 -8,800 8,800 8,800 8,800 8,800
$140 -9,000 -9,000 -9,000 -9,000 9,000 9,000 9,000 9,000

Formula: (Final Market Price - 20 - 30) X 100,000 units; minus sign means that trasfer price of the Milk D
Conditional formatting light red less that zero. Red highlighted areas show that either division does not agr
amount forsaken because transfer is not realized.
Canyon Diaries` Contribution Margin for Selected Transfer Prices $(000)
Transfer Price
40 45 50 55 60 65 70 75 80 85
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
-200 -200 -200 -200 -200 -200 -200 -200 -200 -200
-400 -400 -400 -400 -400 -400 -400 -400 -400 -400
-600 -600 -600 -600 -600 -600 -600 -600 -600 -600
-800 -800 -800 -800 -800 -800 -800 -800 -800 -800
-1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000 -1,000
-1,200 -1,200 -1,200 -1,200 -1,200 -1,200 -1,200 -1,200 -1,200 -1,200
-1,400 -1,400 -1,400 -1,400 -1,400 -1,400 -1,400 -1,400 -1,400 -1,400
-1,600 -1,600 -1,600 -1,600 -1,600 -1,600 -1,600 -1,600 -1,600 -1,600
-1,800 -1,800 -1,800 -1,800 -1,800 -1,800 -1,800 -1,800 -1,800 -1,800
2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000
2,200 -2,200 -2,200 -2,200 -2,200 -2,200 -2,200 -2,200 -2,200 -2,200
2,400 -2,400 -2,400 -2,400 -2,400 -2,400 -2,400 -2,400 -2,400 -2,400
2,600 2,600 -2,600 -2,600 -2,600 -2,600 -2,600 -2,600 -2,600 -2,600
2,800 2,800 -2,800 -2,800 -2,800 -2,800 -2,800 -2,800 -2,800 -2,800
3,000 3,000 3,000 -3,000 -3,000 -3,000 -3,000 -3,000 -3,000 -3,000
3,200 3,200 3,200 -3,200 -3,200 -3,200 -3,200 -3,200 -3,200 -3,200
3,400 3,400 3,400 -3,400 -3,400 -3,400 -3,400 -3,400 -3,400 -3,400
3,600 3,600 3,600 3,600 -3,600 -3,600 -3,600 -3,600 -3,600 -3,600
3,800 3,800 3,800 3,800 -3,800 -3,800 -3,800 -3,800 -3,800 -3,800
4,000 4,000 4,000 4,000 4,000 -4,000 -4,000 -4,000 -4,000 -4,000
4,200 4,200 4,200 4,200 4,200 -4,200 -4,200 -4,200 -4,200 -4,200
4,400 4,400 4,400 4,400 4,400 -4,400 -4,400 -4,400 -4,400 -4,400
4,600 4,600 4,600 4,600 4,600 4,600 -4,600 -4,600 -4,600 -4,600
4,800 4,800 4,800 4,800 4,800 4,800 -4,800 -4,800 -4,800 -4,800
5,000 5,000 5,000 5,000 5,000 5,000 5,000 -5,000 -5,000 -5,000
5,200 5,200 5,200 5,200 5,200 5,200 5,200 -5,200 -5,200 -5,200
5,400 5,400 5,400 5,400 5,400 5,400 5,400 -5,400 -5,400 -5,400
5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 -5,600 -5,600
5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 -5,800 -5,800
6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 -6,000
6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 -6,200
6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 -6,400
6,600 6,600 6,600 6,600 6,600 6,600 6,600 6,600 6,600 6,600
6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800 6,800
7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000
7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200
7,400 7,400 7,400 7,400 7,400 7,400 7,400 7,400 7,400 7,400
7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600
7,800 7,800 7,800 7,800 7,800 7,800 7,800 7,800 7,800 7,800
 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000
8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200
8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400
8,600 8,600 8,600 8,600 8,600 8,600 8,600 8,600 8,600 8,600
8,800 8,800 8,800 8,800 8,800 8,800 8,800 8,800 8,800 8,800
9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000

that trasfer price of the Milk Division is below its variable cost of $20
hat either division does not agree, transfer is not realized and the total
 90 95 100 105 110
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
-200 -200 -200 -200 -200
-400 -400 -400 -400 -400
-600 -600 -600 -600 -600
-800 -800 -800 -800 -800
-1,000 -1,000 -1,000 -1,000 -1,000
-1,200 -1,200 -1,200 -1,200 -1,200
-1,400 -1,400 -1,400 -1,400 -1,400
-1,600 -1,600 -1,600 -1,600 -1,600
-1,800 -1,800 -1,800 -1,800 -1,800
-2,000 -2,000 -2,000 -2,000 -2,000
-2,200 -2,200 -2,200 -2,200 -2,200
-2,400 -2,400 -2,400 -2,400 -2,400
-2,600 -2,600 -2,600 -2,600 -2,600
-2,800 -2,800 -2,800 -2,800 -2,800
-3,000 -3,000 -3,000 -3,000 -3,000
-3,200 -3,200 -3,200 -3,200 -3,200
-3,400 -3,400 -3,400 -3,400 -3,400
-3,600 -3,600 -3,600 -3,600 -3,600
-3,800 -3,800 -3,800 -3,800 -3,800
-4,000 -4,000 -4,000 -4,000 -4,000
-4,200 -4,200 -4,200 -4,200 -4,200
-4,400 -4,400 -4,400 -4,400 -4,400
-4,600 -4,600 -4,600 -4,600 -4,600
-4,800 -4,800 -4,800 -4,800 -4,800
-5,000 -5,000 -5,000 -5,000 -5,000
-5,200 -5,200 -5,200 -5,200 -5,200
-5,400 -5,400 -5,400 -5,400 -5,400
-5,600 -5,600 -5,600 -5,600 -5,600
-5,800 -5,800 -5,800 -5,800 -5,800
-6,000 -6,000 -6,000 -6,000 -6,000
-6,200 -6,200 -6,200 -6,200 -6,200
-6,400 -6,400 -6,400 -6,400 -6,400
-6,600 -6,600 -6,600 -6,600 -6,600
-6,800 -6,800 -6,800 -6,800 -6,800
7,000 -7,000 -7,000 -7,000 -7,000
7,200 -7,200 -7,200 -7,200 -7,200
7,400 -7,400 -7,400 -7,400 -7,400
7,600 7,600 -7,600 -7,600 -7,600
7,800 7,800 -7,800 -7,800 -7,800
8,000 8,000 8,000 -8,000 -8,000
8,200 8,200 8,200 -8,200 -8,200
8,400 8,400 8,400 -8,400 -8,400
8,600 8,600 8,600 8,600 -8,600
8,800 8,800 8,800 8,800 -8,800
9,000 9,000 9,000 9,000 9,000