User Account

All Pages

Calculate minimum transfer price from the Bottle Division

Assignment Help Accounting Basics
Reference no: EM132562076

Question - Fragrance Pty Ltd has two (2) divisions: the Cologne Division and the Bottle Division.

The company is de-centralised and each division is evaluated as a profit centre.

The Bottle Division produces bottles that can be used by the Cologne Division.

The Bottle Division's variable manufacturing cost per unit is $2.00 and shipping costs are $0.10 per unit. The Bottle Division's external sales price is $3.00 per unit. No shipping costs are incurred on sales to the Cologne Division.

The Cologne Division can purchase similar bottles in the external market for $2.50.

The Bottle Division has sufficient capacity to meet all external market demands in addition to meeting the demands of the Cologne Division.

Using the general rule, calculate the minimum transfer price from the Bottle Division to the Cologne Division.

Explain your answer b. For the period just ended, Trek Corporation's Trailer Division reported profit of $54 million and invested capital of $450 million. Assuming an imputed interest rate of 10 per cent, calculate Trailer's return on investment (ROI) and residual income.

Explain what each calculation of ROI and RI means for Trek.

Reference no: EM132562076

Questions Cloud

What external stressors are associated with the issue : Describe the contemporary issue and explain what external stressors are associated with this issue. Outline assessment strategies to screen for this issue.
What is the highest variable cost that will allow the firm : What is the highest variable cost that will allow the firm to at least break even on this project? (Round the answer to 2 decimal places.)
Describe the sdoh that affect the family health status : Describe the SDOH that affect the family health status. What is the impact of these SDOH on the family? Discuss why these factors are prevalent for this family.
How to compute the company break-even point in unit sales : lf the company uses variable costing Compute the unit product cost for year 1, year 2, and year 3. and Compute an income statement for year 1, year 2 and year 3
Calculate minimum transfer price from the Bottle Division : Using the general rule, calculate the minimum transfer price from the Bottle Division to the Cologne Division. Explain what each calculation of ROI and RI means
How does cultural competence relate to better patient care : What are the methods a nurse can use to gather cultural information from patients? How does cultural competence relate to better patient care?
Explain difference between variable and absorption costing : Explain the difference between variable costing and absorption costing income statements. Provide income statements in both variable costing
Is the cost of leftover paint transferred : Paint is needed for t-shirt printing service. Is the cost of leftover paint ($160) transferred from order 28 to order 29 a direct cost or indirect cost? Why?
How much is the selling price per unit : Question - At the break-even point of 2,000 units, variable costs are $165,000, and fixed costs are $96,000. How much is the selling price per unit

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd