Media Inc. has two divisions: Rose that manufactures state-of-the-art DVD players and Sany that manufactures televisions....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Media Inc. has two divisions: Rose that manufactures state-of-the-art DVD players and Sany that manufactures televisions. The following information is available for Rose's DVD player: variable cost per unit $150; fixed costs per unit $75; and a selling price of $400 to outside customers. Rose is currently operating at full capacity Top management would like Rose to provide 15,000 DVD players per year to Sany TV at a transfer price of $330 each. Sany currently purchases DVD players from an outside supplier for $320 each. Tasks: Answer the following questions: a) What is the minimum transfer price? 3 marks b) What is the maximum transfer price? I mark c) How much will the Rose division gain/lose by selling its DVD players at a set transfer price of $330 each? 2 marks d) How much will the Sany division gain/lose by buying its DVD players at a set transfer price of $330 each? 2 marks Media Inc. has two divisions: Rose that manufactures state-of-the-art DVD players and Sany that manufactures televisions. The following information is available for Rose's DVD player: variable cost per unit $150; fixed costs per unit $75; and a selling price of $400 to outside customers. Rose is currently operating at full capacity Top management would like Rose to provide 15,000 DVD players per year to Sany TV at a transfer price of $330 each. Sany currently purchases DVD players from an outside supplier for $320 each. Tasks: Answer the following questions: a) What is the minimum transfer price? 3 marks b) What is the maximum transfer price? I mark c) How much will the Rose division gain/lose by selling its DVD players at a set transfer price of $330 each? 2 marks d) How much will the Sany division gain/lose by buying its DVD players at a set transfer price of $330 each? 2 marks
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Example: Capital Rationing Mayco has a $ 2 , 0 0 0 capital budget and has the opportunity to invest in five different projects. The initial investment and NPV of the projects arc described in the...
-
Ethiopian Civil Service University Department of Public Financial Management and Accounting Advanced Cost and Management Accounting Work Sheet on Chapter I, II and III General instruction: Attempt...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The cost formula for the maintenance department of Rainbow, Ltd., is $19,400 per month plus $7,70 per machine hour used by the production department. Required: a. Calculate the maintenance cost that...
-
Derive the formulas for the mean and the variance of the Poisson distribution by first evaluating E(X) and E[ X(X 1)].
-
On August 1, year 1, Hampton Construction received a 9 percent, 6-month note receivable from Dusty Roads, one of Hampton Construction's problem credit customers. Roads had owed $43,200 on an...
-
Discuss the extent to which you consider that accounts for a small businessperson who is carrying on business as a sole trader should be prepared on a cash flow basis.
-
Jordan Cates and LaToya Orr have operated a successful firm for many years, sharing net income and net losses equally. Caleb Webster is to be admitted to the partnership on June 1 of the current...
-
Costs Incurred Subsequent to Acquisition 10.47 Company R incurs the following costs relating to several of its plant assets. (a) $10,000 to add a room to its plant headquarters. (b) $2,000 to air...
-
Transactions that affect the Inventory and Accounts Payable accounts: o How do we record the purchase of inventory, return of inventory, payment of related Accounts Payable within the discount...
-
2. Soho Enterprises distributes a wide range of household items. They have a September 30 financial year end. The chief accountant has provided you with the following summarised financial data:...
-
Hardaway Fixtures' balance sheet at December 31, 2020, included the following: Shares issued and outstanding: Common stock, $1 par Nonconvertible preferred stock, $50 par $ 940,000 15,000 On July 21,...
-
The Anti-Federalists turned out to be right. Our federal government has grown exponentially past what the Founders envisioned and in so doing has limited our civil liberties and rights and abused the...
-
Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2024, the company issues $2,000,000 of 8% bonds, due in 10 years, with interest payable semiannually on...
-
The y-intercept of a graph of a function is the point on the graph with x-coordinate 0. Thus, to find the y-intercept, set x = 0 in the equation and solve for y. The x-coordinate of the X-intercept...
-
Suppose you want to check how many defective tempered glasses a vendor near you has. After careful inspection you find that 2 % of the total glasses in his shop are defective. Now if you wish to...
-
Wimot Trucking Corporation uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the...
-
Construct a combined common-size and common-base year balance sheet for 2007. What will be the common-base year value for the 2007 net fixed assets? a. 0.89 b. 0.92 c. 1.12 d. 1.32 AHS INC. 2007...
-
What will be the value of AHS' equity multiplier during 2007? a. 0.44 b. 0.56 c. 1.78 d. 1.82 AHS INC. 2007 Income Statement (S in millions) Net sales S 9625 Cost of goods sold 5225 Depreciation 1890...
-
What will be the value of AHS' current ratio during 2007? a. 1.14 b. 1.42 c. 1.49 d. 1.53 AHS INC. 2007 Income Statement (S in millions) Net sales S 9625 Cost of goods sold 5225 Depreciation 1890...
Study smarter with the SolutionInn App