1 . Question :
( TCO 3 ) What are transferred-in costs ? Which departments will never have transferred-in costs ?
2 . Question :
( TCO 7 ) Computer Boutique sells computer equipment and home office furniture . Currently , the furniture product line takes up approximately 50 % of the company ' s retail floor space . The president of Computer Boutique is trying to decide whether the company should continue offering furniture or just concentrate on computer equipment . If furniture is dropped , salaries and other direct fixed costs can be avoided . In addition , sales of computer equipment can increase by 13 %. Allocated fixed costs are assigned based on relative sales .
Computer Home Office Equipment Furniture
3 . Question :
( TCO 4 ) The following monthly data are available for RedEx , which produces only one product that it sells for $ 84 each . Its unit variable costs are $ 28 and its total fixed expenses are $ 64,960 . Sales during April totaled 1,600 units .
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