User Account

All Pages

What would be their minimum transfer price

Assignment Help Managerial Accounting
Reference no: EM133175070

Question - The Cooling Division of JOY International produces a cooling element that it sells to its customers for $18 per unit. Its variable cost per unit is $7, and its fixed cost per unit is $4. Top management of JOY International would like the Cooling Division to transfer 7,000 cooling units to another division within the company at a price of $10. The Cooling Division currently has excess capacity of 12,000 units.

Required -

a. What is the minimum transfer price that the Cooling Division should accept?

b. If the Cooling Division was operating at full capacity, what would be their minimum transfer price the Division should accept?

Reference no: EM133175070

Questions Cloud

Mishkin theory of information asymmetry : Describe, compare and contrast the events preceding the Wall Street Crash of 1929 with the recent Great Recession 2007-2009. How credible is Mishkin
What is the per-share value of the company common stock : The required rate of return on similar common stocks is 13%. What is the per-share value of the company's common stock
What is the role of finance in business : 1. What is the role of finance in business? What are some of the consequences if businesses do not pay adequate attention to finances? Explain how businesses ca
What should be management decision : The company is expanding, and a new stamping machine is under consideration. What should be management decision
What would be their minimum transfer price : If the Cooling Division was operating at full capacity, what would be their minimum transfer price the Division should accept
What inherent power can be used by the government : What inherent power can be used by the government in order to demolish a building which is about to collapse and harmful to the public?
Understanding group behavior : Integrate your leadership style and formulate how you would lead with respect to:
Give all required entry at each of the dates : The going market rate of interest was 10%. Give all required entry (entries) at each of the following dates: January 1, 2000 and December 31, 2000
What are the financial reporting cycles relevant to industry : What information would you require to plan and prepare a budget for a new business? Detail where this information would come from.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Compute the break-even point in units using this method

There is a different customer market for each of these products. Fixed costs reflect product-specific machinery. Compute the break-even point in units

  Compute how many pounds of raw materials purchased

January and desires an ending inventory of 280,000 pounds as of January 31. How many pounds of raw materials should be purchased in January?

  Calculate the weighted average unit contribution margin

Calculate the weighted average unit contribution margin, assuming a constant sales mix. Compute the break-even point in units for each product.

  How would the acquisition of a building be reported

How would the acquisition of a building be reported on a statement of cash flows if purchased by issuing a mortgage note payable in addition to a significant cash down payment?

  Should golden make or buy the containers

The Golden Corporation is beginning Production of Mighty Mint, a new mouthwash in a small spray container. Should Golden make or buy the containers

  Determine the direct labor rate variance

Actual rate for direct labor $12.50 per hr. Determine the direct labor rate variance, time variance, and total direct labor cost variance

  What others factors consider company shuts down any division

What others factors should be considered before the company shuts down any division? factors that should be considered before the company shuts down

  Whose position you sympathise with the most

Whose position you sympathise with the most. And what method would you propose they take? Why

  What the direct materials quantity variance for month was

What the direct materials quantity variance for the month was? A company uses the standard costs to produce a single unit of output

  Calculate total shareholder equity for murry inc

Murry's repurchased 100,000 shares at $50 per share and then sold 70,000 of those shares at $55. Calculate total shareholder's equity for Murry's Inc.

  Find what advice do have for helen bedru

Find What advice do you have for Helen Bedru? Support your response with sufficient and sound reasoning.Helen Bedru is the assistant controller of Cotton Cravat

  Define capital expenditure decisions and capital budgets

Define capital expenditure decisions and capital budgets, and please evaluate investment opportunities using the net present value approach.

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