User Account

All Pages

Explain divisions could be beneficial to zaaro furnishing

Assignment Help Managerial Accounting
Reference no: EM132586975

Zaaro Furnishing has two divisions set up as individual profit centres - Domestic and Business. Business division manufactures and sells computer tables for business customers. Its annual capacity is 15,000 tables, but the division currently has annual demand of only 10,000 tables.

  • Business division's computer tables sell for $800 each, and the division incurs $600 of marginal cost making one table. Fixed costs of the division total to $1,500,000.
  • The Domestic division makes and sells furniture items for retail consumers. The manager of Domestic sees an opportunity to modify Business's computer tables and resell them to retail consumers as IT desks for home use.
  • The manager of Domestic estimates the extra cost of modifying computer tables from Business to be $200 per table. In addition, the manager projects that he could sell 5,000 of these IT desks annually at $880 each. However, he has also decided that he would not pay the Business division more than $560 for each computer table.

Question:

Question 1: Explain if a dual transfer pricing arrangement between the two divisions could be beneficial to Zaaro Furnishing.

Reference no: EM132586975

Questions Cloud

How to compute unit product cost under absorption costing : Prepare a contribution format income statement for the month using variable costing.Compute the unit product cost under absorption costing.
Discussion about the family circumstances : Client stated she is going through emotional episodes recently especially at work. Client reported how she is feeling discriminated at work because she.
Compute the profit-maximizing amounts of electricity : Compute the profit-maximizing amounts of electricity to produce at the two facilities, the optimal price, and the utility company's profits.
Cultural anthropology assignment : Do the following assignment cultural Anthropology - Williams, Raymond. "Anthropology" & "Culture" and Argonauts of the Western Pacific
Explain divisions could be beneficial to zaaro furnishing : Explain if a dual transfer pricing arrangement between the two divisions could be beneficial to Zaaro Furnishing.Zaaro Furnishing has two divisions set up
Case Analysis - REINVENTING OFFICER CHOICE : Case Analysis - REINVENTING OFFICER'S CHOICE. Analyze the competitive environment at the time of the case. Define the brand objectives
Determine the profit-maximizing amounts of electricity : Determine the profit-maximizing amounts of electricity to produce at the two facilities, the optimal price, and the utility company's profits.
Principles of performance measurement : Explain the capital and financing of private and public limited companies and Outline the key regulatory requirements for management and administration
Determine the profit-maximizing level of output : Determine the profit-maximizing level of output for each facility. Provide the equation for the monopolist's marginal revenue function.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Assuming the decline in value is immaterial

Prepare any necessary journal entries, assuming the decline in value is immaterial. Smith Woodwork Co. uses the perpetual inventory system. (Make entries for both methods.)

  What aroma investment in baltic increase aroma net income

What Aroma investment in Baltic will increase Aroma net income by? During the year, Baltic pays $10,000 in dividends to Aroma and reports $100,000 net income.

  How does the percentage compare with the capitalization

What percentage of R&D expenditures was capitalized during the fiscal year ending March 31, 2017? How does this percentage compare with the capitalization

  What is the financial statement for facebook

What is the financial statement for Facebook's 2019 current assets; current liabilities; and property, plant, and equipment for then identify

  Should be concerned with the level of actual expenses

Should she be concerned with the level of actual expenses? Need performance report that will help her focus on areas needing attention.

  For each transaction determine the amount of revenue

For each transaction, determine the amount of revenue or expense, if any that is recorded under accrual-basis accounting and under cash-basis accounting.

  Calculate the budgeted machine set up cost

Calculate the budgeted machine set up cost per unit of product Q.

  What is process managing for financial plan to be successfu

What key processes are considered to be the most significant financial issues that necessitate planning, controlling, and managing for a financial plan

  Find percentage in order to maintain original break-even

Find what percentage in order to maintain the original break-even sales in units (round to the nearest tenth of a percent)? Round percentage to one decimal

  What the selling price per unit was

Investment $2,000,000, Markup percentage on full cost 20%, Rate of return on investment 10%, Variable cost per unit $300, The selling price per unit was

  Mediation generally provides a faster resolution of issues

Mediation generally provides a faster resolution of issues compared to arbitration. Do you think that is provides a better solution? Why or why not? Explain your answer.

  Determine the costs per equivalent unit for may

Determine the cost of the units completed and transferred to the Blending Department during May.

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