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!
WHAT PRICE SHOULD WE CHARGE OURSELVES? Slagle Corporation is a large manufacturing organization. Over the past several years, it has obtained an important component used in its production process exclusively from Harrison, Inc., a relatively small company in Topeka, Kansas. Harrison charges $90 per unit for this part: Variable cost per unit . . . . . . . . . . . . . . . .40 Fixed cost assigned per unit 30 . . . . . . . . . . . Markup 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . Total price . . . . . . . . . . . . . . . . . . . . . . .90
In hope of reducing manufacturing costs, Slagle purchases all of Harrison's outstand- ing common stock. This new subsidiary continues to sell merchandise to a number of outside customers as well as to Slagle. Thus, for internal reporting purposes, Slagle views Harrison as a separate profit center. A controversy has now arisen among company officials about the amount that Harrison should charge Slagle for each component. The administrator in charge of the subsidiary wants to continue the $90 price. He believes this figure best reflects the division's profit- ability: "If we are to be judged by our profits, why should we be punished for selling to our own parent company? If that occurs, my figures will look better if I forget Slagle as a customer and try to market my goods solely to outsiders." In contrast, the vice president in charge of Slagle's production wants the price set at variable cost, total cost, or some derivative of these numbers. "We bought Harrison to bring our costs down. It only makes sense to reduce the transfer price; otherwise the ben- efits of acquiring this subsidiary are not apparent. I pushed the company to buy Harrison; if our operating results are not improved, I will get the blame." Will the decision about the transfer price affect consolidated net income? Which method would be easiest for the company's accountant to administer? As the company's accountant, what advice would you give to these officials?
Sandstone Corporation brought a new machine and agreed to pay for it in equal annual installments of $4,000. How much was recorded as the cost of the machine?
in a research note on the ordinary shares of the milan fashion group dated early july 2007 when a recent price was
whitsitt inc. has provided the following data to be used in evaluating a proposed investment project initial investment
Calculate the new weighted average contribution margin. Compute the adjusted sales volumes of each type of watch given that the sales mix remains the same
Emily Sapphire opened Sapphire's Cleaning Service on August 1, 2016. Journalize and post the August transactions. Use page J1 for the journal
Cash Cycle. The operating cash cycle of a multinational firm goes from cash collection from customers, cash holding for anticipated transaction needs.
the management of heligrande inc. is considering the replacement of an old machine used in its helicopter repair
Ford county lieves for its general fund $2,000,000 in property taxes. In addition, the county is responsible for collecting $4,000,000 in property taxes for the consolidated school district and $1,000,000 in property taxes for a town within the co..
Determine the equal annual withdrawals if $30,000 is invested at 10% interest compounded annually on December 31, 2016
How would you describe this company's competitive strategy?
These balances included inventory in transit balances of $ 34.8 million, $ 103.1 million, and $ 55.0 million at February 2, 2013; January 28, 2012; and January 29, 2011, respectively. Inventory in transit is considered to be all merchandise owned by ..
If Coronado ending retained earnings was $994000, what was the company's revenue for the year
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