Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1)CK Inc. has two divisions, S1 and Q2. S1 can produce up to 1,000 units of T97 per year. 900 units can be sold at

1)CK Inc. has two divisions, S1 and Q2. S1 can produce up to 1,000 units of T97 per year. 900 units can be sold at a market price of $66. Q2 needs 300 units. For interdivisional sales, variable selling cost can be avoided. Last year, S1 incurred the following unit costs:

  • Variable manufacturing costs: $35
  • Fixed manufacturing costs: $20
  • Variable selling cost: $5

Calculate the minimum transfer price per unit that would be acceptable for S1. Round your answer to the nearest whole number.

Answer:

2)Which of the following statements is TRUE?

a.Nonfinancial performance measures should not be used when comparing performance of divisions in different countries.

b.The availability of materials and skilled labour does not normally differ across countries.

c.The economic, legal, political, social, and cultural environments are always similar across countries.

d.Governments in some countries may impose controls and limit selling prices of a company's products.

e.There are no difficulties in comparing performance of divisions across different countries.

3) Luke manages a restaurant in Downtown Vancouver. He is considering accepting a special order from a neighbourhood homeless shelter for 150 Christmas meals. Which of the following is a relevant qualitative factor he should consider?

a.

The number of homeless who will be served as a proportion of the local homeless population

b.

His production capacity

c.

The potential publicity for his restaurant

d.

The price concerns of his competitors

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial & Managerial Accounting

Authors: Carl Warren

12th Edition

1285534646, 978-1133952428

More Books

Students also viewed these Accounting questions