User Account

All Pages

What will be the increase in overall monthly profit

Assignment Help Accounting Basics
Reference no: EM132565233

Question - Megaco's standard cheddar cheese monthly manufacturing capacity and related costs are as follows:

Maximum capacity (kgs) 12,000

Current utilization (kgs) 8,000

Variable costs per kg:

Product cost $6.00

Selling, administration and general expenses $3.00

Monthly fixed costs in respect of providing the maximum capacity:

Production $15,000

Selling, administration and general expenses $5,000

Required - Assume after further negotiation, Megaco and the Restaurant division agree on a transfer price of $10.00. If 2500 kgs per month are transferred internally at this price, what will be the increase in overall monthly profit for Langford Kitchen? Show your calculations to support your answer.

Reference no: EM132565233

Questions Cloud

Explain the impact on cash flows of a build-up in inventory : Explain the impact on cash flows of a build-up in inventory during this covid - 19 pandemic and how can companies mitigate the financial impact
What will be the increase in monthly profit : Assume that Megaco and the Restaurant Division agree on a transfer price of $10.00 per kg cheddar cheese: What will be the increase in monthly profit
Chlamydia on the female reproductive system : Chlamydia is a bacterial infection spread through sexual contact. Left untreated, it can cause serious complications.
Discuss the policy implications for care : What effect on well-being can be seen among family members providing informal care to older adults specifically - What is one advantage and one disadvantage
What will be the increase in overall monthly profit : If 2500 kgs per month are transferred internally at this price, what will be the increase in overall monthly profit for Langford Kitchen
Determine the range of transfer prices for cheddar cheese : Determine the range of transfer prices for cheddar cheese that should be negotiated between Megaco and Restaurant Division
Evidence found by law enforcement : The appellate court decides that the trial court committed reversible error by including evidence found by law enforcement.
What are the various functions of social support : Define informal, quasi, and formal social support and provide one (1) example of each - what are the various functions of social support?
Prepare journal entries to record warranty claims : Warranty liabilities are estimated as 1% of building revenue for the previous 12 months. Prepare journal entries to record warranty claims

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculating the company overall break-even point

Calculate the company's overall break-even point in total sales dollars. Explain your methodology (approximately 2 pages).

  Discuss what depreciation method was used

what depreciation method was used. Round all answers to the nearest whole dollar

  Determine the cost of the finished goods inventory

Tampa Foundry began operations during the current year, manufacturing various products for industrial use. Determine the cost of the finished goods inventory

  Computing costs and efficiency gains from new technologies

These activities include computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions

  Prepare the service revenue budget

Prepare the service revenue (sales) budget for 2017 by listings the departments and showing for each quarter

  What is the gross margin and net income

Winegard Company has the following information available: What is the gross margin and net income

  How much adjustment to Plants January

Plant, Inc., acquires Seed Corporation on January 1, 2017, in exchange for $510,000 cash. How much adjustment to Plant's January 1, 2018

  Prepare journal entries to record the events of october

The Star Exploration Agency, a unit of the Space Department, Prepare journal entries to record the events of October

  Prepare a cash budget for september for apache arts company

Prepare a cash budget for September, October, and November for Apache Arts Company. Be sure to enter 0 wherever required

  How would interpret the total amount for property

Compare the measures used by the different companies for similar items. Are there any inconsistencies in how similar items are measured by the different company

  Determine the gain on sale that liz claiborne reported

Determine the gain on sale that Liz Claiborne reported in 2011 when it disposed of its brand names. What would have been the company's Income (Loss) from Operations for this year had it not sold its Liz Claiborne brand names? Determine the Income fro..

  Prepare statement of revenues and change in fund net balance

Prepare a Statement of Revenues, Expenditres, and Changes in Fund Net Balance, Prepare in good form a Statement of Fund Net Position as of June 30, 2015.

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