Please answer no. 4 to 6Provide a complete solution. Thank you 10.10The Lyn Division of Rosal Homes Inc. produces and sells lumber thatoutside customers or within the company to the Mel Division. The following data have beetgathered for the coming period:can be sold toLyn Division:CapacityPrice perVariable production cost per board footVariable selling cost per board footMel Division:Board feet needed100,000 board feetboard footP4.00P2.00PO.7040,000P3.50Outside price paid per board footer board foot can be saved in shipping costs. tihe Lyn Division sells to the Mel Division, PO.40 per board foot can be saved in shipping costs.1 If current outside sales are 50,000 board feet, what is the minimum transfer price that theLyn Division could accept?2. If current outside sales are 70,000 board feet, what is the minimum transfer price that theLyn Division could accept?3. If Lyn Division has sufficient excess capacity to fulfill the Mel Division's needs, what will bethe effect on the company's overall contribution margin?4. If Lyn Division has sufficient excess capacity to fulfill the Mel Division's needs, what will bethe effect on the company's overall contribution margin if the transfer price negotiated isP2.40?5. If Lyn Division has sufficient excess capacity to fulfill the Mel Division's needs, what will bethe effect on the profit of Mel Division if the transfer price negotiated is P2.40?6. If Lyn Division has sufficient excess capacity to fulfill the Mel Division's needs, what will bethe effect on the profit of the company as a whole if the transfer price of P2.40 is change toP2.70?7. If Lyn Division is operating at capacity, what is the effect on the company's overallcontribution margin?moni

Current Situation of Lyn Division:

Answered: The Lyn Division of Rosal Homes Inc.…

The Lyn Division of Rosal Homes Inc. produces and sells lumber that can be soeen e customers or within the company to the Mel Division. The following data have been ed for the coming period:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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