Division income increase as a result of transfer

Assignment Help Accounting Basics

Reference no: EM13158850

The materials used by the Laramie Division of Barron Company are currently purchased from outside suppliers at $40.00 per unit. These same materials are produced by Barron's Astoria Division. The Astoria Division can produce the materials needed by the Laramie Division at a variable cost of $28.00 per unit. The division is currently producing 80,000 units and has capacity of 100,000 units. The two divisions have recently negotiated a transfer price of $35.00 per unit for 20,000 units.

A. By how much will each division's income increase as a result of this transfer?

Reference no: EM13158850

Questions Cloud

What level of output are your average variable costs : what level of output are your average variable costs minimized and at what level of output are your average total costs minimized?

Compute its new level of national debt and its new debt-gdp : Suppose its GDP grows by 1% in the next year and the budget deficit is again $100 billion. Compute its new level of national debt and its new debt-GDP ratio.

What is the freezing-point depression of the solvent : A solution is made by dissolving 15.5 grams of glucose (C6H12O6) in 245 grams of water. What is the freezing-point depression of the solvent if the freezing point constant is -1.86 °C/m?

Conduct research on different countries cultures : For the Assignment, conduct research on three different countries cultures. Use the Kaplan library or the Internet, then respond to the questions found in the rubric file below.

Division income increase as a result of transfer : By how much will each division's income increase as a result of this transfer?

Structural-functional perspective : Compare the U.S. criminal justice system with the Finnish system using first a structural-functional perspective, then a conflict perspective.

What happens to dna : What happens to DNA, both single and double stranded, when it is treated with a concentrated base such as 1M NaOH and then centrifuged?

Calculate the ratio of the potential energies : Calculate the ratio of the potential energies for the interaction of a water molecule with an Al3+ ion (of radius 53 pm) and with a Be2+ ion (of radius 27 pm).

Determine the amount over or under budget : Determine the amount that the South Region's costs were over or under budget.

User Account

All Pages