User Account

All Pages

What is the minimum price

Assignment Help Cost Accounting
Reference no: EM132964426

Question - Freddie motors Inc. operates as a decentralized multidivisional company. The Igo division of Freddie motors Inc. purchases most of its airbags from the Airbag division. The Airbag division incremental cost for manufacturing an airbag is $110 per unit. The Airbag division currently sells to its external customers 60,000 airbags and transfers to the loo division 30, 000 airbags per year. The airbag division currently uses 75% of its available production capacity. The Airbag division current external selling price is $140 per airbag, the marketing selling costs are $12 per airbag. The Igo division has requested the Airbag division to transfer an additional 40,000 units for the next year.

Required -

a. What is the minimum price that the airbag division would transfer the 40,000 additional airbags requested by the Igo Division? Provide explanations for your answer

b. Identify the qualitative factors that must be considered when establishing a transfer price policy?

Reference no: EM132964426

Questions Cloud

How many total mortgages were in the canadian market : In February 2009, 14,676 mortgages were in arrears in Canada, which represented 0.38% of all mortgages. How many total mortgages
How important is the reputation of a business : How important is the reputation of a business? How important is CEO's reputation to the reputation of the business itself?
Compute the price of xyz stock for which mr blight account : The price of XYZ stock fell right after Mr. Blight bought it. Compute the price of XYZ stock for which Mr. Blight's account violate the 30% margin requirement.
Parametric and nonparametric statistical tests : Now, imagine you are the CEO of a large hospital. You are interested in reducing turnover among nurses. You wish to find out to what extent nurses' turnover int
What is the minimum price : What is the minimum price that the airbag division would transfer the 40,000 additional airbags requested by the Igo Division
Analyze the impact the medicare and medicaid patient : Analyze the impact the Medicare and Medicaid Patient and Program Protection Act of 1987 had on Medicare and Medicaid
What the client investments would have to earn an average of : What the client's investments would have to earn an average of _ percent a year for the entire 28 years? Your retired client has accumulated investment.
Flexicurity of the labor market through the formal : Flexicurity of the Labor Market through the Formal/Informal Duality, in the Context of Globalization-Cristian MARINESCU Review of International Comparative Mana
Discuss the ethics of cruise lines : 1. What global forces have contributed to the growth of the cruise line industry.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd