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Paladinen [302]
3 years ago
12

Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $1,350 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 $900 per unit.
Assume that a transfer price of $1,200 has been established and that 75,000 units of materials are transferred, with no reduction in the Components Division's current sales.

a. How much would Ziegler Inc.'s total operating income increase?
$

b. How much would the Instrument Division's operating income increase?
$

c. How much would the Components Division's operating income increase?
$
Business
1 answer:
Sergio039 [100]3 years ago
3 0

Answer:

(a) $33750000 (b) $11250000 (c) $22500000

Explanation:

Solution

(a) How much would Ziegler Inc. total income of operating  increase.

Now,

Units * (Cost of purchased from outside supplier - Variable cost)

Thus,

75000 * ($1350 - $900) = $33750000

(b) How much would the Instrument Division's operating income increase

Now,

The Units * (Cost of purchased from outside supplier - Transfer Price)

So,

75000 units * ($1350 - $1200) = $11250000

(C) How much would the Components Division's operating income increase?

Now,

Units * (Transfer Price - Variable cost)

75000 units * ($1200 - $900) = $22500000

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<h3>What Is Cost Leadership Strategy? </h3>

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4 0
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May 3 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $9 cash per uni
Airida [17]

Answer:

Explanation:

May 3

Dr merchandise inventory 27,000

   Cr Cash 27,000

May 5

Dr Accounts receivable 19,500

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May 5

Dr COGS 13,500

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May 7

Dr Sales returns and allowances 1,950

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May 8

Dr Sales returns and allowances 750

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Bond prices and yields Assume that the Financial Management​ Corporation's ​$1 comma 000​-par-value bond has a 7.800 % ​coupon,
Neporo4naja [7]

Answer:

(a) Dollar price of the​ bond = Par value × Current price percentage

                                             = $1,000 × 106.124%

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Current\ yield = \frac{Interest}{Bond\ value}

Current\ yield = \frac{78}{1,061.24}

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(c) Issue price of bond is $1,000 and current maturity price is $1,061.24. Thus, bond price is greater than the par value.

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