Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E3-27,29,30,33 27 29 30 33 Evergreen Corp. has two divisions, Fern and Bark. Fern produces a widget that Bark could use in the production of

E3-27,29,30,33

27

image text in transcribed29

image text in transcribed30

image text in transcribed33

image text in transcribed

Evergreen Corp. has two divisions, Fern and Bark. Fern produces a widget that Bark could use in the production of units that cost $211 in variable costs, plus the cost of the widget, to manufacture. Fern's variable costs are $84 per widget, and fixed manufacturing costs are applied at a rate of $48 per widget.Widgets sell on the open market for $129 each. Evergreen's policy is that internal transfers will be made at variable cost. If Bark purchases the widgets from Fern, what will be the transfer price? Multiple Choice $211 $132 $84 O $136 Palm Inc. has a profit margin of 23% and an investment turnover of 3. Sales revenue is $803,000. What is the operating income? Multiple Choice O $267,667 O $554,070 O $61,563 $184,690 Investment turnover defined as: Multiple Choice the ratio profit margin to return on investment. the ratio of sales revenue to average invested assets. the ratio of net operating income average invested assets. O the ratio of net operating income to sales revenue. Spice Company has two divisions, Parsley and Sage. Parsley produces a unit that Sage could use in its production. Sage currently is purchasing 50,700 units from an outside supplier for $57. Parsley is operating at less than full capacity and has variable costs of $34 per unit. The full cost to manufacture the unit is $45. Parsley currently sells 450,700 units at a selling price of $61. If an internal transfer is made, variable shipping and administrative costs of $1.00 per unit could be avoided. What would be the minimum transfer price? Multiple Choice O $58.00 $44.00 $33.00 O O $34.00

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

More Books

Students also viewed these Accounting questions

Question

Prepare a constructive performance appraisal.

Answered: 1 week ago

Question

List the advantages of correct report formatting.

Answered: 1 week ago