Mathematics, 03.12.2020 06:10, alexdub3438
Decision on Transfer Pricing
Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $385 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 $320 per unit.
a. If a transfer price of $350 per unit is established and 21,000 units of materials are transferred, with no reduction in the Components Division's current sales, how much would Ziegler Inc.’s total operating income increase?
$fill in the blank 1
630,000
b. How much would the Instrument Division’s operating income increase?
$fill in the blank 2
1,365,000
c. How much would the Components Division's operating income increase?
$fill in the blank 3
Answers: 2
Other questions on the subject: Mathematics
Mathematics, 21.06.2019 17:30, paiged2003
The jewelry store is having a sale. necklaces that were regularly priced at $23.50 are on sale for $18.80. what is the percentage of decrease in the price of necklaces?
Answers: 1
Mathematics, 21.06.2019 21:50, Brittany0512
Prism m and pyramid n have the same base area and the same height. cylinder p and prism q have the same height and the same base perimeter. cone z has the same base area as cylinder y, but its height is three times the height of cylinder y. the figures and have the same volume.
Answers: 3
Mathematics, 22.06.2019 00:20, ridzrana02
Jubal wrote the four equations below. he examined them, without solving them, to determine which equation has no solution. which of jubal’s equations has no solution hurry
Answers: 1
Do you know the correct answer?
Decision on Transfer Pricing
Materials used by the Instrument Division of Ziegler Inc. are currentl...
Questions in other subjects:
Engineering, 24.11.2020 20:10
Mathematics, 24.11.2020 20:10
