What is the difference in Duran Divisions profit

Assignment Help Accounting Basics
Reference no: EM132520443

Question - Fruities Ltd has two divisions, Durian Division and Juice Division. Durian Division has an annual capacity of 10 000 units of durian juice concentrate. Juice Division's annual requirement of durian juice concentrate is 8000 units. Fruities Ltd requires that divisions should purchase inputs internally where available, and uses a cost-plus transfer price policy, where transfer price is set at variable cost plus 25 per cent. Therefore, Durian Division always satisfies the demand of the Juice Division first, before selling the remaining durian concentrate to external suppliers at the market price of $10 per unit. The variable cost of one unit of durian juice concentrate at Durian Division is $6. The external demand for What is the difference in Duran Division's profit if a market-price transfer price policy was adopted instead of the cost-plus price policy?

Reference no: EM132520443

Questions Cloud

Prepare journal entries to record the dividend transactions : The dividend requires shareholders' approval at the next AGM. Required: Prepare the journal entries to record the dividend transactions
Make recommendations and analysis potential problems occur : Make recommendations and analysis the potential problems occur to answer why the company has less competitive advantage in the market
Record all necessary journal entries for may : Halloway Corp pays its employees every Tuesday for the previous 5-day work week (Monday-Friday). Record all necessary journal entries for May 31
Explain process of establishing new account for fixed assets : Explain process of establishing new accounts for fixed assets that will be depreciated like equipment. why is accumulated dep. set up with a negative balnce?
What is the difference in Duran Divisions profit : The external demand for What is difference in Duran Division's profit if a market-price transfer price policy was adopted instead of the cost-plus price policy
What is the unit product cost for both years : Reconcile the absorption costing and the variable costing net operating income figures for each year. What is the unit product cost for both years?
Calculate the basic earnings per share : During the year, 30,000 treasury shares were repurchased from the open market at $35 on 1 September 2019. Calculate the basic earnings per share
Born to sparkle essay : In the Complaint filed by Sheree Cosmetics, LLC, plaintiff argues that the Defendant (Kylie Jenner, Kylie Cosmetics, and LLC) has violated two different laws
What can you say about the acceleration of the block : Set the initial position of the block to zero, and set the initial velocity to -3 m/s. Run the simulation. When is the work negative? When is it positive? Why?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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