What is the lowest transfer price

Assignment Help Accounting Basics
Reference no: EM131796735

Question - The Clarkson Company's Cargo Division is currently operating at 100% of capacity (capacity is 100,000 units). Normal selling price is $20.00 per unit. At current operating levels, fixed costs are $6 per unit and variable costs are $9 per unit. Another division of Clarkson Company would like to buy from the Cargo Division. If this sale is made, $2 per unit in variable selling and administrative costs would be saved. What is the lowest transfer price the Cargo Division should accept?

$13.00

$18.00

$15.00

$7.00

Reference no: EM131796735

Questions Cloud

Compute the probability that enough power will available : a) What are the probabilities that exactly k sources work for k = 0, 1, 52? b) Compute the probability that enough power will available.
What is the significant impact on the us company : What is the significant impact on the US Company when they follow IFRS in reporting the assigned topic
What form of business organization do you think you choose : The rest of you, assume you will someday be an owner or manager of a business. What form of business organization do you think you will choose and why?
Find formulae in terms of p for the probabilities : Assume that proportion p o of twins are identical. Proportion q = 1 -p fraternal. Find formulae in terms of p for the following probabilities for twins:
What is the lowest transfer price : If this sale is made, $2 per unit in variable selling and administrative costs would be saved. What is lowest transfer price the Cargo Division should accept
What is the probability that the marble is black : There are two boxes, the odd box containing I black marble and 3 white marbles, and the even box containing 2 black marbles and 4 white marbles.
Discuss a statement that a conservative approach will ensure : You make a statement that a conservative approach will ensure that financial statements are not doctored
Complete the report showing the activity variances for march : Complete the report showing the activity variances for March. Complete the report showing the spending variances for March.
What is the probability that it is good chip : a) Given a chip passes the cheap test, what is the probability that it is good chip?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Hubert and fran agree to assign 125000 to a 5 year covenant

hubert and fran agree to assign 125000 to a 5 year covenant not to compete. how should hubert allocate the 975000

  Determine the suta tax that the company paid to

Assuming that reciprocal arrangements exist between the two states, determine the SUTA tax that the company paid to

  Problem related tro fair value approach

The options can be converted into common stock after July 1, 2011. The required service period is three years. How much compensation expense will be recorded for the year ending December 31, 2010 assuming that the fair value approach is used?

  Please compute the percentage increase or decrease in cash

please review the following real-world hewlett packard statement of cash flows and address the two questions belowcash

  Retained earnings has a cost associated with it

Returns below the cost of capital will cover all fixed costs associated with capital and provide an excess return to stockholders.

  Artic company uses the perpetual inventory system

Using the data shown in Exercise 6-38, journalize the entries for the transactions assuming that Artic Company uses the perpetual inventory system.

  Discuss repay the note plus interest at maturity date

the adjustment at end of calendar year, and the repayment of the note

  Calculate return on equity-roe

Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued. Also, calculate the percentage changes in ROE for economic expansion and recession, assuming no taxes.

  What would be production possibility frontiers for brazil

What would be the production possibility frontiers for Brazil and the United States? Could trade help reduce poverty in Brazil and other developing countries?

  Adams company started operations on january

Adams Company started operations on January 1, 2013. Six months later on June 30, 2013, the company decided to prepare financial statements.

  On april 30 2012 one year before maturity red products inc

on april 30 2012 one year before maturity red products inc. retired 150000 of 8 bonds payable at 103. the book value of

  Depreciation is not recorded because the city has no cost.

Which of the following is true for reporting the gift within the government-wide financial statements?

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