Jefferson company has two divisions jefferson bottles and

Reference no: EM13577249

Jefferson Company has two divisions: Jefferson Bottles and Jefferson Juice. Jefferson Bottles makes glass containers, which it sells to Jefferson Juice and other companies. Jefferson Bottles has a capacity of 10 million bottles a year. Jefferson Juice currently has a capacity of 3 million bottles of juice per year. Jefferson Bottles has a fixed cost of $100,000 per year and a variable cost of $0.01/bottle. Jefferson Bottles can currently sell all of its output at $0.03/bottle.

Required:

a. What should Jefferson Bottles charge Jefferson Juice for bottles so that both divisions will make appropriate decentralized planning decisions?
b. If Jefferson Bottles can only sell 5 million bottles to outside buyers, what should Jefferson Bottles charge Jefferson Juice for bottles so that both divisions will make appropriate decentralized planning decisions?

Reference no: EM13577249

Questions Cloud

Management is considering placing a new hire in an upper : a large manufacturing firm tests job applicants who recently graduated from college. the test scores are normally

Determine the cash flow from operating activities using : the following information pertains to baxter company for 2013beginning inventory 90units

Assuming a discount rate of 14 compute the difference : the lansing community college registrars office is considering replacing some canon copiers with faster copiers

Scenario - john haddock owns 75 percent of haddock : scenario - john haddock owns 75 percent of haddock corporation. the other 25 percent of the stock is held by johns wife

Jefferson company has two divisions jefferson bottles and : jefferson company has two divisions jefferson bottles and jefferson juice. jefferson bottles makes glass containers

For some types of plants when plants with different : q1.a man has blood type b. the mans mother was type ab and his father was type a. if his wife has blood type o and is

While departmental supervisors have been happy with the : several years ago shipley corporation developed a comprehensive budgeting system for profit planning and control

An insurance company wants to determine if their clients : insurance companies track life expectancy information to assist in determining the cost of life insurance policies.

Let x represent the number that occurs when a green die : let x represent the number that occurs when a green die is tossed and y the number that occurs when a red die is

User Account

All Pages