User Account

All Pages

What should be the transfer price

Assignment Help Accounting Basics
Reference no: EM131915273

Question - How do you do find the minimum transfer price?

The machining division of ITA International has a capacity of 2,310 units. Its sales and cost data are:

Selling price per unit - 80$

$80Variable manufacturing costs per unit - 25$

Variable selling costs per unit - 6$

Total fixed manufacturing overhead - 189,100$

The machining division is currently selling 2,020 units to outside customers, and the assembly division of ITA International wants to purchase 510 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $6/unit. What should be the transfer price in order not to affect the machining division's current profit?

Reference no: EM131915273

Questions Cloud

How much does he need to borrow to purchase the? house : Mr. Bill S.? Preston, Esq., purchased a new house for ?$60,000 and paid ?$20,000 upfront. How much does he need to borrow to purchase the? house? ?
Discuss about the common mission area : Centervale has been developing their local disaster management plan since the terrorist attacks of September 11, 2001.
How do you influence the behavior of the unwilling : How do you influence the behavior of the unwilling, unconcerned, or unmotivated? Give examples from your own leadership experience.
What is the operating cash flow of project : The equipment has an expected salvage value of $1,200. The tax rate is 34%. What is the Operating Cash Flow (OCF) of this project?
What should be the transfer price : The machining division of ITA International has a capacity of 2,310 units. What should be the transfer price in order not to affect machining division's profit
Identify key elements of a social entrepreneurship project : Identify the key elements of a social entrepreneurship project and Define a prototype of your project that you can test during the program
Discuss an ethical theory that would take different approach : Discuss an ethical theory that would take a different approach. Illustrate your understanding of this ethical theory with a concrete example.
Would ned have an argument for religious discrimination : Ned was hired six weeks ago by "State of Estates" to supervise the call center on weekends. At the time of hire, Ned did not disclose that he is a follower.
The total income generated from investments : The total income generated from their investments was $230,000 after all expenses were paid. What is the net profitability in dollars?

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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