Materials used by Ford Company in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. However, the same materials are available from Division B. Division B has unused capacity and can produce the materials needed by Division A at a variable cost of $20 per unit. a. If a transfer price of $25 per unit is established and 60,000 units of material are transferred with no reductions in Division B's current sales, how much would Ford Company's total operating income increase? $fill in the blank 1 b. How much would the operating income of Division A increase? $fill in the blank 2 c. How much would the operating income of Division B increase? $fill in the blank 3 d. If the negotiated price approach is used, what would be the range of acceptable transfer prices? Round your answer to two decimal places. $fill in the blank 4 to $fill in the blank 5
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 17:30, lanamiami
After the embarrassing sign incident at the restaurant you own, you decide to offer employees a six-week fundamental writing skills workshop. a local business communication instructor, who has experience teaching writing skills at treleaven community college, will facilitate the sessions. to encourage employees to attend these optional sessions, write an email that explains why you’re offering the workshop and why employees should participate.
Answers: 2
Business, 22.06.2019 23:50, chimwim8347
Keisha took the vark inventory and discovered she prefers to learn mainly through visual and kinesthetic modes. which study strategy would best match these preferences?
Answers: 1
Business, 22.06.2019 23:50, yatayjenings12
Analyzing operational changes operating results for department b of delta company during 2016 are as follows: sales $540,000 cost of goods sold 378,000 gross profit 162,000 direct expenses 120,000 common expenses 66,000 total expenses 186,000 net loss $(24,000) suppose that department b could increase physical volume of product sold by 10% if it spent an additional $18,000 on advertising while leaving selling prices unchanged. what effect would this have on the department's net income or net loss? (ignore income tax in your calculations.) use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers. sales $answer cost of goods sold answer gross profit answer direct expenses answer common expenses answer total expenses answer net income (loss) $answer
Answers: 1
Do you know the correct answer?
Materials used by Ford Company in producing Division A's product are currently purchased from outsid...
Questions in other subjects:
Mathematics, 23.01.2021 08:00
English, 23.01.2021 08:00
Mathematics, 23.01.2021 08:00
Mathematics, 23.01.2021 08:00
Arts, 23.01.2021 08:00
