Reference no: EM132695523
Green Grass Co., a division of Lawn Supplies, Inc., produces lawn mowers. Green Grass sells its lawn mowers to home improvement stores, as well as to Lawn Supplies, Inc. The following information is available for Green Grass' mowers:
Fixed costs per unit $ 230
Variable cost per unit 150
Selling price per unit 500
Lawn Supplies, Inc. can purchase comparable lawn mowers from an outside supplier for $475. In order to ensure a reliable supply, the management of Lawn Supplies, Inc. ordered Green Grass to provide 65,000 lawn mowers per year at a transfer price of $475 per unit. Green Grass is currently operating at full capacity. It could avoid $10 per unit of variable selling costs by selling internally.
Instructions
Problem a) Calculate the minimum transfer price that Green Grass should be required to accept.
Problem b) Calculate the increase (decrease) in contribution margin for Lawn Supplies, Inc. for this transfer
|
How much is the total rgp from the installment sale
: If Nikki Inc. succeeds to resell the equipment at 100,000, how much is the Net Income in 2016? 7. How much is the total RGP from the installment sale?
|
|
Differences between employees or employees and management
: Managers would agree that 80% of their time is spent on managing while 20% is spent on resolving workplace conflicts. These workplace conflicts include.
|
|
What is reva basis in the repossessed property
: Repossession costs were $3800. She incurred $3200 for improvements prior to the resale. What is Reva's basis in the repossessed property?
|
|
What are community outreach activities of your agency
: In the studies, you are presented with a description and two applications of community outreach. As a human services leader, your organization may regularly.
|
|
Calculate minimum transfer price that green grass required
: Green Grass Co., a division of Lawn Supplies, Inc., Calculate the minimum transfer price that Green Grass should be required to accept.
|
|
How does mr blowhard scheme affect the amount
: How does Mr. Blowhard's scheme affect the amount of income that the company would otherwise report in its financial statements
|
|
Are the given recommendation practical and relevant
: Can you give me some examples of each of employer and employee should have its own set of recommendation? and are these recommendation practical and relevant?
|
|
What amount was the adjusting entry to supplies expense
: The supplies account increased by $10,000 during the year to an ending balance of $66,000. For what amount was the adjusting entry to supplies expense?
|
|
How might the ada requirement affect teachers
: How might the ADA requirement affect teachers, law enforcement officers, and firefighters? Why and How is it legal for law enforcement to turn applicants away.
|