Pertinent transfer price, perfect and imperfect markets. Mountaineer, Ic., has two divi- sions, A and B, that manufacture expensive bicycles. Division A produces the bicycle frame, and divi- sion B assembles the rest of the bicycle onto the frame. There is a market for both the subassembly and the final product. Each division has been designated as a profit center. The transfer price for the subassembly has been set at the long-run average market price. The following data are available for each division: Selling price for final product $280 Long-run average selling price for intermediate product Incremental cost per unit for completion in division B Incremental cost per unit in division A 160 170 100 The manager of division B has made the following calculation: $280 Selling price for final product Transferred-in cost per unit (market) Incremental cost per unit for completion Contribution (loss) on product $160 170 330 S (50)

Pertinent transfer price, perfect and imperfect markets. Mountaineer, Ic., has two divi- sions, A and B, that manufacture expensive bicycles. Division A produces the bicycle frame, and divi- sion B assembles the rest of the bicycle onto the frame. There is a market for both the subassembly and the final product. Each division has been designated as a profit center. The transfer price for the subassembly has been set at the long-run average market price. The following data are available for each division: Selling price for final product $280 Long-run average selling price for intermediate product Incremental cost per unit for completion in division B Incremental cost per unit in division A 160 170 100 The manager of division B has made the following calculation: $280 Selling price for final product Transferred-in cost per unit (market) Incremental cost per unit for completion Contribution (loss) on product $160 170 330 S (50)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Thank you for that, it actually coincides with what I think. However, could you please calculate the breakeven points and give an explanation of what they mean to the director. Also, could you please calculate the sales activity to reach a target profit of 20,000
Subject: accounting
Management of Great Springs Bottled Water Company has asked you, the controller, to develop a transfer pricing system for the company. The Transportation Department of the company sells all of its product to the Bottling Department of the company. Thus the Transportation Department's sales become the Bottling Department's cost of goods sold. In order to determine an optimal transfer pricing system, management would like you to demonstrate what an income statement would look like under a cost, market, and negotiated transfer pricing structure. These various transfer prices are listed below. Cost-based $0.61 Market-based $0.73 Negotiated $0.70 Gallons transferred 279,000 Prepare an income statement for each of the transfer prices by filling in the missing numbers in the provided income statement based on each transfer price and calculate the operating income/loss percentage. Round your answers to the nearest whole number. Great Springs Bottled Water CompanyIncome Statement…
Management of Great Springs Bottled Water Company has asked you, the controller, to develop a transfer pricing system for the company. The Transportation Department of the company sells all of its product to the Bottling Department of the company. Thus the Transportation Department's sales become the Bottling Department's cost of goods sold. In order to determine an optimal transfer pricing system, management would like you to demonstrate what an income statement would look like under a cost, market, and negotiated transfer pricing structure. These various transfer prices are listed below. Cost-based $0.61 Market-based $0.74 Negotiated $0.70 Gallons transferred 279,000 Prepare an income statement for each of the transfer prices by filling in the missing numbers in the provided income statement based on each transfer price and calculate the operating income/loss percentage. Round your answers to the nearest whole number. Great Springs Bottled Water CompanyIncome Statement…
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The manager of the West store has concerns relating to the store’s financial performance and has asked for help analyzing transfer costs. After calculating the operating income in dollars and the operating income percent, analyze the following financial information to determine costs that may need further investigation. It may be helpful to perform a vertical analysis (i.e., perform a vertical analysis). warehouse west store sales $18,920 $43,860 cost of goods sold 9,082 21,053 gross profit $9,838 $22,807 selling expenses 860 2,752 wages expense 4,730 15,351 costs allocated from corporate 2,838 4,386 Total expenses $8,428 $22,489 operating income/(loss) $ ? ? Operating Income/(loss) % ? ?
EA5. LO 9.4 Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. (Hint: It may be helpful to perform a vertical analysis.)
Use the information for Desks Unlimited above with the following changes:1. The Computer Desk Division is able to sell at full capacity (15,000 units).2. If there is a transfer between the divisions, the Computer Desk Division will save $50 per unit in Variable Marketing and Shipping costs.Answer the following questions. Show your work and clearly label your answers. a. What is the appropriate Transfer Price range?b. If a transfer is made for $460 per desk, how much better of worse off is the firm?
Hi, I also need help finding the lowest acceptable transfer price as well as the highest acceptable transfer price. thanks
What are the answers for the following? Construct a cost-volume-profit chart on your own paper. What is the break-even sales? What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage. Round to one decimal place.