Burt Inc. has a number of divisions, including the Indian Division, a producer of liquid pumps, and Maple Division, a manufactur
er of boat engines.
Indian Division produces the h20-model pump that can be used by Maple Division in the production of motors that regulate the raising and lowering of the boat engine's stern drive unit. The market price of the h20-model is $720, and the full cost of the h20-model is $540.
Required:
1. If Burt has a transfer pricing policy that requires transfer at full cost, what will the transfer price be?
$
Do you suppose that Indian and Maple divisions will choose to transfer at that price?
Maple Division Select chooses to transfer refuses to transfer Item 2
Indian Division Select chooses to transfer refuses to transfer Item 3
2. If Burt has a transfer pricing policy that requires transfer at market price, what would the transfer price be?
$
Do you suppose that Indian and Maple divisions would choose to transfer at that price?
Maple Division Select chooses to transfer refuses to transfer Item 5
Indian Division Select chooses to transfer refuses to transferItem 6
3. Now suppose that Burt allows negotiated transfer pricing and that Indian Division can avoid $120 of selling expense by selling to Maple Division.
Which division sets the minimum transfer price?
A. Indian
B. Division
C. Maple
D. Division
What is the minimum transfer price?
$
Which division sets the maximum transfer price?
A. Indian
B. Division
C. Maple
D. Division
What is the maximum transfer price?
$
Do you suppose that Indian and Maple divisions would choose to transfer somewhere in the bargaining range?
A. Yes
B. No
Indian Division produces the h20-model pump that can be used by Maple Division in the production of motors that regulate the raising and lowering of the boat engine's stern drive unit. The market price of the h20-model is $720, and the full cost of the h20-model is $540.
Required:
1. If Burt has a transfer pricing policy that requires transfer at full cost, what will the transfer price be?
$
Do you suppose that Indian and Maple divisions will choose to transfer at that price?
Maple Division Select chooses to transfer refuses to transfer Item 2
Indian Division Select chooses to transfer refuses to transfer Item 3
2. If Burt has a transfer pricing policy that requires transfer at market price, what would the transfer price be?
$
Do you suppose that Indian and Maple divisions would choose to transfer at that price?
Maple Division Select chooses to transfer refuses to transfer Item 5
Indian Division Select chooses to transfer refuses to transferItem 6
3. Now suppose that Burt allows negotiated transfer pricing and that Indian Division can avoid $120 of selling expense by selling to Maple Division.
Which division sets the minimum transfer price?
A. Indian
B. Division
C. Maple
D. Division
What is the minimum transfer price?
$
Which division sets the maximum transfer price?
A. Indian
B. Division
C. Maple
D. Division
What is the maximum transfer price?
$
Do you suppose that Indian and Maple divisions would choose to transfer somewhere in the bargaining range?
A. Yes
B. No
1 answer:
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Answer: Net Asset Value = 1950
Explanation:
Assets = $225 million
Liabilities = $30 million
Shares outstanding = 10 million
We can compute the Net Asset Value, using the following formula:
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<em>NAV per share = 19.5</em>
<em>Therefore, the NAV of 100 share is 1950</em>
Answer:
Explanation:
given,
Mean,μ= 35mm
Standard Deviation,σ = 0.5mm
Sample size, n = 36
Sample Standard deviation =
=
= 0.0833
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Calculating the Z score of the for the diameter mentioned.
now, Form Z-table
Subtracting the value
= 0.9846 - 0.2741
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Answer:
The answer is d. 3911
Explanation:
First, we obtain the contribution margin, wih the formula Selling price per unit minus variable expense per unit. So, the contribution margin per unit is .
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With those two things, the final task is to calculate how many units we need, covered the fixed expenses, to achieve the company target profit. The formula is Target profit / Contribution margin per unit. So, the number of units is .
Finally, we add these two number, to obtain the total units needed to cover the fixed costs and achieve the target profit: