Venetian corporation manufactures car stereos it is a

Reference no: EM13581189

Venetian Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Venetian sells car stereos to Berna, as well as to other vehicle manufacturers and retail stores. The following information is available for Venetian's standard unit: variable cost per unit $34.96; fixed cost per unit $22.97; and selling price to outside customer $86.26. Berna currently purchases a standard unit from an outside supplier for $79.71. Because of quality concerns and to ensure a reliable supply, the top management of Berna has ordered Venetian to provide 221,000 units per year at a transfer price of $34.96 per unit. Venetian is already operating at full capacity. Venetian can avoid $4.19 per unit of variable selling costs by selling the unit internally. Answer each of the following questions.

What is the potential loss to the corporation as a whole resulting from this forced transfer? (Round answer to 0 decimal places, e.g. 125.)

Reference no: EM13581189

Questions Cloud

Company a manufacturing produces a single product that : company a manufacturing produces a single product that sells for 60. variable flexible costs per unit equal 20.

During 2014 the company produced and sold 100000 units : engineers at abc company developed the following standard costs for direct material and direct labour for one of their

Samantha an executive has agi of 100000 before considering : samantha an executive has agi of 100000 before considering income or loss from her miniature horse business. her

Starling co is considering disposing of a machine with a : starling co. is considering disposing of a machine with a book value of 12500 and estimated remaining life of five

Venetian corporation manufactures car stereos it is a : venetian corporation manufactures car stereos. it is a division of berna motors which manufactures vehicles. venetian

On july 1 2012 selig company purchased for cash 40 of the : on july 1 2012 selig company purchased for cash 40 of the outstanding capital stock of spoor corporation. both selig

Required based on the above information calculate the : a company reported the following informationnet income for the year was 60 million.equipment purchases were 5

Jerry grant the new controller of blackburn company has : jerry grant the new controller of blackburn company has reviewed the expected useful lives and salvage values of

K2b co is considering the purchase of equipment that would : k2b co. is considering the purchase of equipment that would allow the company to add a new product to its line. the

User Account

All Pages