Full Serve Inc. has a number of divisions. One division, Gamma, makes zippers that are used in the manufacture of boots. Another division, Delta, makes boots that use the zippers and needs 95,000 zippers per year. Gamma incurs the following costs for one zipper: Direct materials $0.25 Direct labor 0.22 Variable overhead 0.97 Fixed overhead 1.40 Total $2.84 Full Serve has the capacity to make 960,000 zippers per year, but due to a soft market, it only plans to produce and sell 630,000 zippers next year. Delta currently buys zippers from an outside supplier for $4.00 each (the same price that Gamma receives). Assume that Full Serve allows negotiated transfer pricing. What is the floor of the bargaining range and which division sets it?

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?

An electronics store is running a promotion where for every video game purchased, the customer receives a coupon upon checkout to purchase a second game at a 50% discount. the coupons expire in one year. the store normally recognized a gross profit margin of 40% of the selling price on video games. how would the store account for a purchase using the discount coupon?

Afarmer is an example of what kind of producer?