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Please help me with these 3 accounting problems Thank you! The Milk Chocolate Division of Mmmm Foods, Inc. had the following operating results last year:
Please help me with these 3 accounting problems
Thank you!
The Milk Chocolate Division of Mmmm Foods, Inc. had the following operating results last year: Milk Chocolate expects Identical operating results this year. The Milk Chocolate Division has the ability to produce and sell 255,000 pounds of chocolate annually. Assume that the Milk Chocolate Division Is currently operating at Its capacity of 255,000 pounds of chocolate. Also assume again that the Peanut Butter Division wants to purchase an additional 23,500 pounds of chocolate from Milk Chocolate. Under these conditions, what amount per pound of chocolate would Milk Chocolate have to charge Peanut Butter In order to maintain Its current profit? (per pound) Division X makes a part that It sells to customers outside of the company. Data concerning this part appear below: Division Y of the same company would like to use the part manufactured by Division X In one of Its products. Division Y currently purchases a similar part made by an outside company for $59 per unit and would substitute the part made by Division X. Division Y requires 5,510 units of the part each period. Division X has ample excess capacity to handle all of Division Y's needs without any Increase in fixed costs and without cutting Into outside sales. According to the formula in the text, what Is the lowest acceptable transfer price from the standpoint of the selling division Division X makes a part with the following characteristics: Division Y of the same company would like to purchase 15,200 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $20 each. Suppose that Division X Is operating at capacity and can sell all of its output to outside customers. If Division X sells the parts to Division Y at $20 per unit, the company as a whole will be: worse off by $60&. worse off by $30i each period. better off by $30t each period. There will be no change in the status of the company as a whole
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