Based on Goldman Motors data in Exercise 23-20, assume that a transfer price of $290 has been
Question:
Based on Goldman Motor’s data in Exercise 23-20, assume that a transfer price of $290 has been established and that 25,000 units of material are transferred, with no reduction in the Components division’s current sales.
(a) How much would Goldman Motors’ total income operation increase?
(b) How much would the Truck division’s income from operations increase?
(c) How much would the components division’s income from operations increase?
(d) if the negotiated price approach in used, what would be the range of acceptable prices and why?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a This amount is the same amount by which Goldman Motors income from operations increased in Ex 2320 ...View the full answer
Answered By
Simon kingori
I am a tier-one market researcher and content developer who has been in this field for the last six years. I’ve run the freelancing gamut; from market research, data mining and SEO/SMM to copywriting, Content Development, you name it, I’ve done it. I’m extremely motivated, organized and disciplined – you have to be to work from home. My experience in Freelancing is invaluable- but what makes me a cut above the rest is my passion to deliver quality results to all my clients- it’s important to note, I've never had a dissatisfied client. Backed by a Masters degree in Computer Science from MOI university, I have the required skill set and burning passion and desire to deliver the best results for my clients. This is the reason why I am a cut above the rest. Having taken a Bsc. in computer science and statistics, I deal with all round fields in the IT category. It is a field i enjoy working in as it is dynamic and new things present themselves every day for research and exploration.
1+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
