Symonds Bendigo Division purchases from an outside supplier for $50 per unit. The company's Ballarat Division, which has no excess capacity, makes and sells the same part for external customers at a variable cost of $35 and a selling price of $55. If Ballarat commences sales to Bendigo it will (1) use the general rule and (2) be able to reduce the variable cost on internal transfers by $3. Ballarat should establish a transfer price of:

Select one:

a.$34

b.$58

c.$52

d.$38

For Terscua Ltd sales are $900 000, total expenses are $750 000, invested capital is $150 000 and the imputed interest rate is 20 per cent. What is the residual income for the year?

Select one:

a.($120 000)

b.$110 000

c.($110 000)

d.$120 000

The Duo Retail Company Ltd experiences relatively constant demand of 24 000 units per year for one of its products. The product, a coffee-making machine, costs the firm $30. Placing an order costs $200 and annual carrying costs are $2 per unit. The firm works 275 days per year and desires a safety stock of 350 units. The lead time for an order is 20 working days. The economic order quantity for Duo is:

Select one:

a.3098.

b.1549.

c.2221.

d.2191

The Lango Ltd experiences relatively constant demand of 30 000 units per year for one of its products. The product, a coffee-making machine, costs the firm $40. Placing an order costs $120 and annual carrying costs are $3 per unit. The firm works 255 days per year and desires a safety stock of 150 units. The lead time for an order is 20 working days. The economic order quantity for Lango is:

Select one:

a.2221

b.3098

c.1549

d.2191