Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical blades, and the Tavaris Division, a manufacturer of medical instruments. Alamosa Division produces a 2.5 cm steel blade that can be used by Tavaris Division in the production of scalpels. The market price of the blade is $24. Cost information for the blade is: Variable product cost $ 9.30 Fixed cost 5.30 Total product cost $14.60 Tavaris needs 19,000 units of the 2.5 cm blade per year. Alamosa Division is at full capacity (90,000 units of the blade). Required: 1. If Carreker, Inc., has a transfer pricing policy that requires transfer at market price, what would the transfer price be? $ per unit Do you suppose that Alamosa and Tavaris divisions would choose to transfer at that price? - Select your answer -YesNo 2. Now suppose that Carreker, Inc., allows negotiated transfer pricing and that Alamosa Division can avoid $1.70 of selling and distribution expense by selling to Tavaris Division. Which division sets the minimum transfer price, and what is it? Round your answers to the nearest cent, if needed. - Select your answer -AlamosaTavaris $ per unit Which division sets the maximum transfer price, and what is it? - Select your answer -AlamosaTavaris $ per unit Do you suppose that Alamosa and Tavaris divisions would choose to transfer somewhere in the bargaining range? - Select your answer -YesNo 3. What if Alamosa Division plans to produce and sell only 68,000 units of the 2.5 cm blade next year? Which division sets the minimum transfer price, and what is it? Round your answers to the nearest cent, if needed. - Select your answer -AlamosaTavaris $ per unit Which division sets the maximum transfer price, and what is it? - Select your answer -AlamosaTavaris $ per unit Do you suppose that Alamosa and Tavaris divisions would choose to transfer somewhere in the bargaining range? - Select your answer -YesNo
What stock price is expected 1 year from now? What is the required rate of return?
Through diversification one can eliminate systematic risk. What are some common violations of the efficient market hypothesis?
The cost of raising capital through retained earnings is ________ the cost of raising capital through issuing new common stock.
Describe the organizational forms a company might have as it evolves from a start up to a major corporation.
How should an analyst determine the risk-free rate that is to be used in any particular valuation assignment?
How do you calculate the price of a coupon bond from the prices of zero-coupon bonds?
For an investment analysis to be consistent with the goal of shareholder wealth maximization, it must meet three criteria.
In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..
What effect will undertaking this project has on the price per share of Pine Stix's stock today (i.e., at t=0)?
You open a brokerage account and purchase 200 shares of Google at $443.05 per share. You borrow 40% from your broker to help pay for the purchase. The interest rate on the loan is 8%. Assume the day after your stock purchase, Google announces abys..
What is the standard deviation of the returns?
The company’s tax rate is 25% and dividend exclusion rate is 70%. What is the after-tax return on the best investment alternative?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd