Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information relates to Questions 1 and 2 Fragrance Pty Ltd has two divisions: the Perfume Division and the Bottle Division. The company is
The following information relates to Questions 1 and 2 Fragrance Pty Ltd has two divisions: the Perfume Division and the Bottle Division. The company is decentralised and each division is evaluated as a profit centre. The Bottle Division produces bottles that can be used by the Perfume Division which produces perfume. The following information relates to the production of bottles. Bottle Division 50,000 46,000 11,000 3 Production capacity Internal demand from Perfume Division External demand Market price ($) Variable costs per unit ($): -Processing cost - Shipping cost Fixed cost per month ($) 2.0 0.1 25,000 Question 1 Calculate the total opportunity cost Bottle Division will incur if they meet the internal demand from Perfume Division $ 0 Question 2 Calculate the transfer price of one bottle using the general transfer-pricing formula. Please round your answer to 2 dec places. $ 0 The following information relates to Questions 1 and 2 Fragrance Pty Ltd has two divisions: the Perfume Division and the Bottle Division. The company is decentralised and each division is evaluated as a profit centre. The Bottle Division produces bottles that can be used by the Perfume Division which produces perfume. The following information relates to the production of bottles. Bottle Division 50,000 46,000 11,000 3 Production capacity Internal demand from Perfume Division External demand Market price ($) Variable costs per unit ($): -Processing cost - Shipping cost Fixed cost per month ($) 2.0 0.1 25,000 Question 1 Calculate the total opportunity cost Bottle Division will incur if they meet the internal demand from Perfume Division $ 0 Question 2 Calculate the transfer price of one bottle using the general transfer-pricing formula. Please round your answer to 2 dec places. $ 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started