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160 (75% variable) when production is 10 ,000 units. manufacture Z-25. The Manager of Division-N has expressed the opinion that transfer price is too high. The two Divisional Managers are about to enter into discussions to resolve the conflict and Manager of Division-M to supply him with some information
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The new material costs substantially more than the old ($1.75 in 2009 and $1.6625 in 2010 vs. $1.50 per meter). Its price is unlikely to come down even more within the coming year. Standard material price should be re-examined and possibly changed. GloriaDee should continue to work to reduce direct materials and direct manufacturing labor content.