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8 points The Post Division of Awal Company produces basic posts, which can be sold to outside customers or sold to the Lamp Division of

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8 points The Post Division of Awal Company produces basic posts, which can be sold to outside customers or sold to the Lamp Division of Awal Company. The following data are available for last year's activities of the Post Division The Post Division Capacity an units 300.000 posts Selling price per post to outside customers $1.75 Variable costs per post $0.90 Fixed costs, total $150,000 The Lamp Division Number of Units needed Purchase price from Outside Suppliers 25.000 posts $15 Required: 1. Suppose that the Post Division tells to outside customers 270,000 units What is the lowest transfer price that would not reduce the profits of the Port Dicion? Ani wut is the ring of transfer? 2 Suppose that the Post Division sells to outside customers 300.000 units and the cost of packing and support the posts for outside customers is sol per the packing and sluppug costs would not have to be incurred on sales of the posts to Lamp Divi What the lowest transfer price that would not reduce the profits of the Port Dive And what is the range of transfer Furniture, Inc makes and sells a single product called a Bk. The company wants to prepare the direct material budget for the quarter ending June 30 Budgeted production of Bas for the next six months is as follows: February 7.000 Unats March 7.750 Units April 5.950 Units May 6,300 Umts June 7.250 Utats July 8,000 Unt It takes four yards of Material A to make one Bik The company wants to maintain monthly ending inventory of Material A equal to 20% of the following months production teedi On March 31, 1.840 yards of Material A were on hand. The cost of Material A is 56 per yard Required: 1 Prepare the Direct Material Budget for April May June and quarter 2. Based on the direct material budget that you prepared in requirement 1 above and assume that the direct materials purchase in February was $15.000 and in March was 580.000 Prepare the cash disbursements budget for April if the company policy for paying purchases is as follows: - 15% in the month of purchase -63% one month after purchase 20% two months after purchase Bahrain Rubber Company (BRC) budgets on an annual basis for its fiscal year. The following beginning and ending inventory levets (in units) are planned for next year Beginning Ending Inventory Inventory Raw material 30,000 40,000 Finished goods 70,000 60.000 Three pounds of raw material are needed to produce each unit of finished product IT BRC plans to sell 510,000 units during nexa year, the number of units it would have to manufacture during the year would be 500.000 unito 520,000 units 510,000 units 570.000 units A company that is seeking to increase ROI should attempt to decrease: Sales. Turnover. Margin Average operating assets. Which of the following statements is true? 0.5 points Using residual income to evaluate managers wil motivate them to pursue investments that increase the residual income oven dat lovers their retum animestment (RON Using residual income to evaluate manager wil motivate them to pursue vements that increase their rotum on investment (RO) eventowers thermodal com Using residual income to evakunte managers wil motivate them to pursue investments that increase thorntido income only when como increases their own intent RON Using residual income to evaluate managers wil motivate them to pursuinvestments that increase the return on investment (RO) even though they do not card nought comes exceed the minimum required return on operating asset

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