Minimum transfer price that the heating division

Assignment Help Financial Accounting

Reference no: EM13755554

The Heating Division of KLM International produces a heating element that it sells to its customers for $45 per unit. Its variable cost per unit is $20, and its fixed cost per unit is $10. Top management of KLM International would like the Heating Division to transfer 15,000 heating units to another division within the company at a price of $29. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept?

Minimum transfer price $

Reference no: EM13755554

Questions Cloud

Used for the FUTA tax rate for employers : During 2015, Jeff Smallwood worked for two different employers. Until May, he worked for Rowland Construction Company in Ames, Iowa, and earned $22,000.

Compute the maximum deductible contribution : Blaise is a partner in Sweet LLP, which maintains a profit-sharing Keogh plan for its partners and employees. Compute the maximum deductible contribution in each of the following situations: (for 2013 and 2014)

Evidence primarily passages from the work : The essay should be in MLA essay format (see the attached sample essay below) and should have a self-assessment (which should answer these questions) as the first page. A works cited entry and in-text citations for each text discussed are required.

Expand the equity capital and avoid high-risk debt : How can the company expand the equity capital and avoid high-risk debt in order to make up for the cash flow inadequacy using ESOP?

Minimum transfer price that the heating division : The Heating Division of KLM International produces a heating element that it sells to its customers for $45 per unit. Its variable cost per unit is $20, and its fixed cost per unit is $10. Top management of KLM International would like the Heating Di..

Flexible spending account arrangement : Mary Giles participates in a flexible spending account (FSA) arrangement with her employer. She has a choice of receiving $5,000 of child care assistance or $5000 of health cost reimbursements. Mary’s adjusted gross income each year is approximately ..

Bass pro shops is a leading retailer of outdoor gear : Bass Pro Shops is a leading retailer of outdoor gear with retail locations across the United States. What makes a Bass Pro Shop different from other sporting and outdoor goods retail stores? What are their competitors doing differently or the same? W..

Profit sharing plan : D.J. Wright has been selected as the Trustee of the Tucker Co. profit sharing plan. Describe his responsibilities for:

Qualified plan meets minimum coverage rules : What two tests apply in determining whether a Qualified Plan meets minimum coverage rules? Be very specific.

User Account

All Pages