Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Effects of transfer price choices McCann Company has two divisions, Division C and Division D. Division C manufactures Part C82 and sells it to Division D, and also sells the same part to the outside market for $50 per unit. Division C has capacity to make 400,000 units of C82 per year. The division's fixed costs are $5,000,000 per year and its variable costs per unit are as follows:
Direct materials
$20
Direct labor
12
Variable overhead
8
Part C82 is an essential component for Division D's only product; the division sells 200,000 units per year at a price of $120 per unit. Division D's fixed costs are $4,000,000 per year and its variable costs per unit, excluding the cost of Part C82, are as follows:
$10
25
10
Required
Suppose Division C's demand for C82 from the outside market is currently 150,000 units per year. By how much will McCann's income decrease if Division D purchases its desired 200,000 units of C82 at $50 per unit from the market rather than from Division C? What transfer price(s) would you suggest to induce both divisions to want Division D to purchase from Division C instead of from the market?
during april the production department of a process manufacturing system completed a number of units of a product and
Amy, Beth, and Meg each own 100 of the 300 outstanding shares of Theta Corporation stock. Amy wants to sell her shares, which have a $40,000 basis and a $100,000 FMV. Either Beth and/or Meg can purchase Amy's shares (50 shares each) or Theta can r..
Prepare journal entries to record the following four separate issuances of stock.
A fixed asset with a cost of $41000 and accumulated depreciation of $36000 is traded for a similar asset priced at $50000. Assuming a trade-in allowance of $4000, the cost basis of the new asset is?
(a) Determine corrected net incomes for 2009, 2010, and 2011. (b) Give the entry to bring the books of the company up to date in 2012, assuming that the books have been closed for 2011.
a corporation reported net income of 3730000 and paid preferred cash dividends of 100000 durning the current year.there
kolbys korndogs is looking at a new sausage system with an installed cost of 924000. this cost will be depreciated
Prepare a simple balance sheet of assets and liabilities for the bank immediately after the deposit is received.
Many companies use a balanced scorecard for performance evaluation. The balanced scorecard has four business perspectives, and utilizes KPIs to evaluate performance in various areas. Which of the following KPIs would relate to the financial perspe..
Determine the internal rate of return on the investment, ignore taxes and determine the net present value of the investment, ignore taxes.
measuring and recording pension expense.presented below is information related to the pension plan of zimmer inc. for
Bar T Ranches, Inc. is considering the purchase of a new helicopter for $400,000. The firm's old helicopter has a book value of $90,000, but can only be sold for $60,000. It was being depreciated at the rate of $13,500 per year for four more years..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd