Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $432 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $359 per unit. Assume that a transfer price of $410 has been established and that 33,300 units of materials are transferred, with no reduction in the Components Division's current sales. a. How much would Ziegler Inc.'s total operating income increase? b. How much would the Instrument Division's operating income increase? c. How much would the Components Division's operating income increase?
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- Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $332 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $276 per unit. A. If a transfer price of $302 per unit is established and 28,900 units of materials are transferred, with no reduction in the Components Division's current sales, how much would Ziegler Inc.’s total operating income increase? B. How much would the Instrument Division's operating income increase? C. How much would the Component Division's operating income increase?Materials used by the Instrument Division of Ziegler Inc. are currentlypurchased from outside suppliers at a cost of $1,350 per unit. However,the same materials are available from the Components Divison. TheComponents Division has unused capacity and can produce thematerials needed by the Instrument Division at a variable cost of $900per unit. a. If a transfer price of $1,000 per unit is established and 75,000units of materials are transferred, with no reduction in theComponents Division's current sales, how much would ZieglerInc.'s total operating income increase?b. How much would the Instrument Division's operating incomeincrease?c. How much would the components Division's operating incomeincrease?Materials used by the Instrument Division of T_Kong Industries are currently purchased from outside suppliers at a cost of $290 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $241 per unit. a. If a transfer price of $264 per unit is established and 39,200 units of materials are transferred, with no reduction in the Components Division’s current sales, how much would T_Kong Industries’ total income from operations increase?$ b. How much would the Instrument Division’s income from operations increase?$ c. How much would the Components Division’s income from operations increase?$
- Materials used by the Instrument Division of XPort Industries are currently purchased from outside suppliers at a cost of $220 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $165 per unit. If a transfer price of $190 per unit is established and 60,000 units of materials are transferred, with no reduction in the Components Division’s current sales, how much would XPort Industries’ total income from operations increase? How much would the Instrument Division’s income from operations increase? How much would the Components Division’s income from operations increase?Materials used by Best Bread Company in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit.However, the same materials are available from Division B.Division B has unused capacity and can produce the materials needed by Division A at a variable cost of $20 per unit. a If a transfer price of $25 per unit is established and 60,000 units of material are transferred, with no reductions in Division B's current sales, how much would Best Bread Company's total income from operations increase? b Assuming transfer price of $25 per unit is established and 60,000 units of material are transferred, with no reductions in Division B's current sales, how much would the income from operations of Division A increase? c Assuming transfer price of $25 per unit is established and 60,000 units of material are transferred, with no reductions in Division B's current sales, how much would the income from operations of Division B increase? d If the…Materials used by Best Bread Company in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. However, the same materials are available from Division B. Division B has unused capacity and can produce the materials needed by Division A at a variable cost of $20 per unit. 1. If a transfer price of $25 per unit is established and 60,000 units of material are transferred, with no reductions in Division B's current sales, how much would Best Bread Company's total income from operations increase? 2. Assuming transfer price of $25, how much would the income from operations of Division A increase? 3. Assuming transfer price of $25, how much would the income from operations of Division B increase? 4. If the negotiated price approach is used, what would be the range of acceptable transfer prices?
- Materials used by Ford Company in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. However, the same materials are available from Division B. Division B has unused capacity and can produce the materials needed by Division A at a variable cost of $20 per unit. a. If a transfer price of $25 per unit is established and 60,000 units of material are transferred with no reductions in Division B's current sales, how much would Ford Company's total operating income increase?$fill in the blank 1 b. How much would the operating income of Division A increase?$fill in the blank 2 c. How much would the operating income of Division B increase?$fill in the blank 3 d. If the negotiated price approach is used, what would be the range of acceptable transfer prices? Round your answer to two decimal places.$fill in the blank 4 to $fill in the blank 5Materials used by Ford Company in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. However, the same materials are available from Division B. Division B has unused capacity and can produce the materials needed by Division A at a variable cost of $20 per unit. a. If a transfer price of $25 per unit is established and 60,000 units of material are transferred with no reductions in Division B's current sales, how much would Ford Company's total operating income increase? $ 600,000 b. How much would the operating income of Division A increase? $ 300,000 v c. How much would the operating income of Division B increase? $ 300,000 V d. If the negotiated price approach is used, what would be the range of acceptable transfer prices? Round your answer to two decimal places. x to XMaterials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of material are transferred, with no reduction in Division 6's current sales. How much will Division 6's income from operations increase? Question 5 options: $8,000 $15,000 $80,000 $150,000
- Use this information for Jefferson Company to answer the question that follow.Materials used by Jefferson Company in producing Division C's product are currently purchased from outside suppliers at a cost of $10.00 per unit. However, the same materials are available with Division A. Division A has unused capacity and can produce the materials needed by Division C at a variable cost of $8.50 per unit. A transfer price of $9.50 per unit is negotiated and 25,000 units of material are transferred, with no reduction in Division A's current sales.How much will Jefferson's total income from operations increase? a.$100,000 b.$37,500 c.$150,000 d.$62,500The materials used by the South Division of Eagle Company are currently purchased from outside suppliers at $30 per unit. These same materials are produced by Eagle’s North Division. Operating income assuming no transfers between divisions is $1,200,000 for the North Division and $1,360,000 for the South Division. The North Division has unused capacity and can produce the materials needed by the South Division at a variable cost of $15 per unit. The two divisions have recently negotiated a transfer price of $22 per unit for 30,000 units. Based on the agreed upon transfer price, with no reduction in the North Division’s current sales: the North Division’s operating income would increase _____; the South Division’s operating income would increase _____; and the Eagle Company’s operating income would increase _____. $210,000; $240,000; $450,000 $210,000; $450;000; $240,000 $240,000; $210,000; $450,000 $240,000; $450,000; $210,000 none of the abovehe materials used by the Multinomah Division of Dolan Company are currently purchased from outside suppliers at $42 per unit. These same materials are produced by the Pembroke Division. The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $28 per unit. The division is currently producing 120,000 units and has capacity of 180,000 units. The two divisions have recently negotiated a transfer price of $36 per unit for 24,000 units. By how much will each division's income increase as a result of this transfer?