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pychu [463]
3 years ago
8

Decision on Transfer Pricing Materials used by the Instrument Division of XPort Industries are currently purchased from outside

suppliers at a cost of $185 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $154 per unit. a. If a transfer price of $168 per unit is established and 33,200 units of materials are transferred, with no reduction in the Components Division's current sales, how much would XPort Industries’ total income from operations increase?
Business
1 answer:
aleksandrvk [35]3 years ago
3 0

Answer:

$1,029,200

Explanation:

The computation of net income increases is shown below:-

Market purchase cost = 33,200 × $185

= $6,142,000

Component division variable cost = 33,200 × $154

= $5,112,800

Net income increases = $6,142,000 - $5,112,800

= $1,029,200

hence, the net income would be increased by $1,029,000 and the same is to be considered

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1 year ago
An investor currently holds stock in Giggle Corporation and is considering buying stock in either Macrosoft Corporation or Facep
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Answer:

b

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3 0
3 years ago
There are zero coupon bonds outstanding that have a YTM of 5.97 percent and mature in 19 years. The bonds have a par value of $1
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Answer:

market price = $1,104.20

Explanation:

yield to maturity of zero coupon bonds = (face value / market price)¹/ⁿ - 1

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  • n = 19 x 2 = 38
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The replacement cost of an inventory item is below the net realizable value and above the net realizable value less the normal p
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Answer:

D. Replacement cost.

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