Reference no: EM132935055
Question - Telex Petroleum Plc is a manufacturing groups. It is operating on divisional structure. Imperial, the group's supplying division, sold barrel of refined petrol to the buying division, Maven. Maven can also buy from external supplier - Lance Petrol Ltd.
The Imperial division operating at full capacity producing 10,000 barrels of refine petrol. Out of this, 8,000 barrels were sold to external market at £50 per barrel and 2,000 barrels to Maven division at £40 per barrel. The Variable cost is £25.
Maven was approach by Lance Petrol to buy similar refined petrol at a price of £35 per barrel.
For the purpose of calculating the internal profit, Imperial allocated the total annual fixed of £80,000 as 70% to external and 30% to Maven.
Required -
a) Calculate the profits of the group and Imperial if Maven division decided to take the Imperial offer and at the same time Imperial sold to the external.
b) Calculate the effect on imperial's contribution and the group profit if Maven accept Lance petrol 's offer.
|
How much money must be put into a bank account
: How much money must be put into a bank account yielding 5.5% annually in order to have RM250 at the end of five years
|
|
Compute the market price of the bonds
: At the beginning of current year, Synthesis Company purchased a ten-year bond with a face amount of P5,000,000. Compute the market price of the bonds
|
|
How much should be credited to Ben capital
: They further agree that the newly formed partnership will assume Ben's liability as shown in his statement of financial position. How much should be credited
|
|
What will be Bs capital balance
: C is admitted to the partnership by investing $270,000 and is to receive a one-fourth ownership interest. What will be B's capital balance
|
|
Calculate the profits of the group and Imperial
: Calculate the profits of the group and Imperial if Maven division decided to take the Imperial offer and at the same time Imperial sold to the external
|
|
How much cash was received by ABC Company
: ABC Company sold P 500,00 worth of inventories with trade discounts of 10%,15%,25%, terms: 2/10,n/30. How much cash was received by ABC Company
|
|
What amount of Share in Profit of Associate
: The investee reported net income of P8,000,000 for 2019. What amount of Share in Profit of Associate should be reported by Park Bo Gum Company for 2019
|
|
What is its present value
: A five-year annuity pays $1000 at the end of every month for four years. It has an interest rate of 3%. What is its present value
|
|
How large must each sinking fund payment be
: The Valencia Development Company (VDC) is planning to sell a P100,000,000, How large must each sinking fund payment be
|