How do solve the after tax income for canada tires

Assignment Help Managerial Accounting
Reference no: EM132717006

Canada's Tires is a division of the Wheels To Go Company. Canada's Tires produces bicycle tires in its automated plant in Canada. Fixed costs per tire are $5, and variable costs are $2 per tire. The tires are shipped to Wheels To Go's plant in Africa where bicycles are assembled and sold locally at a sales price of $50 each. Fixed costs to make the bicycles are $10 per unit and variable costs per unit are $15 plus the cost of the tires. Wheels To Go has a tax rate of 30% in Canada, and 20% in Africa.

Instructions

Problem a) Calculate the after tax income for Canada's Tires, the African assembly division, and the company as a whole if 100,000 tires are transferred at Canada's Tires' full cost. Assume the 100,000 tires are all used to produce 50,000 bicycles.

Problem b) Calculate the after tax income for Canada's Tires, the African assembly division, and the company as a whole if 100,000 tires are transferred at 110% of Canada's Tires' full cost. Assume the 100,000 tires are all used to produce 50,000 bicycles.c) What would be your recommendation to Wheels To Go?

Reference no: EM132717006

Questions Cloud

Data performance functions of organization : The proper implementation of a database is essential to the success of the data performance functions of an organization.
Prototyping and architectural styles : Give an example of a software system for which developing a prototype would result in saving a significant amount of development time
Explain the concept of capital flight : Please explain the concept of capital flight and discuss it effects in the countries that experience positive and negative results.
Analyze organizational behavior challenges : In this assignment, you will create a PowerPoint presentation outlining what you anticipate will be the biggest challenges facing organizations in the next.
How do solve the after tax income for canada tires : How do Solve the after tax income for Canada Tires, the African assembly division, and the company as a whole if 100,000 tires are transferred at Canada's Tires
What is the time-complexity of a decider : What is the time-complexity of a decider - Reflect on your learning experience with this assignment and report your observations and insights
Discuss gay role models : Some people argue that sex education is a parent's responsibility and they do not want schools teaching about sex. How many of the parents of your peers
Make the necessary entries on June : The group measures its property plants and equipment using a costs model. Tax rate is 30 percent. Make the necessary entries on June
Direct manipulation and virtual environments : Your software development company has been contracted to build a tool that will manage user accounts and rights in an Active Directory environment.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd