47. Redding Company has two divisions with the following segment margins for the current year: Northern, s200,000; Southern, $400,000. Common expenses of the company are $50,000. What is Redding Company's income? OSs0.000 O sG00,000 S150,000 $550,000 48. Grey Inc. has many divisions that are evaluated on the basis of ROL. One division, Contra, makes boxes. A second division, Mantra, makes chocolates and needs 80,000 boxes per year Centra incurs the following costs for ane bax: Direct materials $0.35 Direct labor $0.60 Variable overhead $0.40 Fixed averhead $0.13 $1.48 Tolal Centra has capacity to make 700,000 boxes per year. Mantra currently buys ts boxes from an outside supplier for $1.80 cach (the same price that Centra receives). Assume that Grey Inc. mandates that any transfers take place at full manufacturing cost. What would be the transfer price if Contra transferred boxes to Mantra? O $1.35 Cannot be determined trom the information gen OS1.48 $0.90 $1.00
47. Redding Company has two divisions with the following segment margins for the current year: Northern, s200,000; Southern, $400,000. Common expenses of the company are $50,000. What is Redding Company's income? OSs0.000 O sG00,000 S150,000 $550,000 48. Grey Inc. has many divisions that are evaluated on the basis of ROL. One division, Contra, makes boxes. A second division, Mantra, makes chocolates and needs 80,000 boxes per year Centra incurs the following costs for ane bax: Direct materials $0.35 Direct labor $0.60 Variable overhead $0.40 Fixed averhead $0.13 $1.48 Tolal Centra has capacity to make 700,000 boxes per year. Mantra currently buys ts boxes from an outside supplier for $1.80 cach (the same price that Centra receives). Assume that Grey Inc. mandates that any transfers take place at full manufacturing cost. What would be the transfer price if Contra transferred boxes to Mantra? O $1.35 Cannot be determined trom the information gen OS1.48 $0.90 $1.00
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 37P
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