User Account

All Pages

What is the range of acceptable prices

Assignment Help Managerial Accounting
Reference no: EM132842343

Problem - The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $97 each. Each trailer incurs $39 of variable manufacturing costs. The Trailer division has capacity for 24,000 trailers per year and incurs fixed costs of $520,000 per year.

Required -

1. Assume the Assembly division of Baxter Bicycles wants to buy 4,600 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles's divisions?

2. Assume the Trailer division currently only sells 10,700 Trailers to outside customers, and the Assembly division wants to buy 4,600 trailers per year from the Trailer division. What is the range of acceptable prices that could be used on transfers between Baxter Bicycles's divisions?

Reference no: EM132842343

Questions Cloud

How much will smc receive from the offering : Southland Manufacturing Company (SMC) is executing an initial public. Calculate the initial return earned by investors who are allocated shares in the IPO.
Compute the depreciation expense for each of the four years : The printer was sold at the end of Year 4 for $4,210. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation
Discuss the ethical and professional issues faced by chai : Discuss the ethical and professional issues faced by Chai & Co regarding the audit of Loan Shark and any actions that need to be taken by the engagement.
Explaining the type of violence and most effective treatment : Prior to beginning work on this learning activity, read Chapter 13 in the required text. Select a type of violence that you explored in the text.
What is the range of acceptable prices : Assume the Trailer division currently only sells 10,700 Trailers to outside customers, What is the range of acceptable prices
What is the t-account for cost of goods sold : What is the T-account for cost of goods sold? Cost of merchandise returned by customers and restored to inventory 2,600. Shrinkage on merchandise as of year-end
Examine relevant organizations and key issues in education : Examine relevant organizations and key issues in education that will be beneficial to you as you continue to work in your future career.
Explain what mean by the term compliance : Explain what mean by the term compliance. Relating to this, is anyone familiar with the Sarbanes-Oxley (SOX) legislation enacted by Congress in 2002?
Compute the annual amortization expense for these items : Dynamo's financial condition just prior to the acquisition of these assets is shown in Required B. Compute the annual amortization expense for these items

Reviews

Write a Review

Managerial Accounting Questions & Answers

  The exhibition for its financial impact to be profit neutral

How many people must attend the exhibition for its financial impact to be profit neutral (i.e., the museum will not be better or worse off financially)?

  Make in journal form the entries necessary to record stock

Make in journal form the entries necessary to record the stock transactions of the Hamilton Corp. during 2019. July 1 Retired the remaining shares.

  What is firm tax expense in financial statements

HI5020 Corporate Accounting Assignment. What is your firm's tax expense in its latest financial statements? Comment on deferred tax assets

  What is the breakeven point in dollars

What is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answer up to the nearest whole number.)

  Calculate Profit margin and Acid test ratio

The market price of stock on December 31, 2018 is $28.00. The income tax rate is 24%. Calculate Profit margin and Acid test ratio

  How much money must be invested now in order

How much money must be invested now in order to be able to withdraw $5,000 from this investment at the end of each year for 8 years

  Calculate the annual equivalent of each ae or eav

Calculate the NPV of each project and calculate the annual equivalent of each (AE or EAV)

  What would be the new retirement amount for mike nitsch

What would be the new retirement amount for Mike Nitsch, Gwen Manchester, and Stephanie Baker, if the retirement percentage was increased 0.50%.

  What amount of setup cost assigned to the steel bars will be

Overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be

  Determine what was variable overhead efficiency variance

Determine What was variable overhead efficiency variance for the month? The corporation's variable overhead is applied on the basis of direct labor-hours.

  Amount of maintenance total cost

What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are:

  What is smartcom target cost for the chip

SmartCOM's expects the SG&A cost for this chip will be $6.00. If SmartCOM's desired chip profit margin is 15%, what is SmartCOM's target cost for the chip?

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