Unable to figure out the third alternative
Unable to figure out the third alternative Crane Company is a multidivisional company. Its managers have...
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Crane Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a subassembly part for which there is a competitive market. Division B currently uses this subassembly for a final product that is sold outside at $2,440. Division A charges Division B market price for the part,...
J Thting mum transfer price fuations. P9.44A (LO 6) The Atlantic Company is a multidivisional company. Its managers have full responsi- bility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market. Division B currently uses this sub-assembly for a final product that is sold outside at $2,400. Division A charges division B market price for the part, which is $1,400 per unit. Variable...
Soma Corporation is a multi-divisional company whose managers have been delegated full profit responsibility and complete autonomy to accept or reject transfers from other divisions. Division X produces 2,000 units of a subassembly that has a ready market. One of these subassemblies is currently used by Division Y for each final product manufactured, the latter of which is sold to outsiders for $1,600. Y's sales during the current period amounted to 2,000 completed units. Division X charges Division Y the...
Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions: Case 1 2 3 4 Alpha Division: Capacity in units 53,000 301,000 103,000 202,000 Number of units now being sold to outside customers 53,000 301,000 79,000 202,000 Selling price per unit to outside customers $ 99 $ 41 $ 66 $ 48 Variable costs per unit...
Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions: Case 1 2 3 4 Alpha Division: Capacity in units 51,000 311,000 103,000 191,000 Number of units now being sold to outside customers 51,000 311,000 78,000 191,000 Selling price per unit to outside customers $ 98 $ 39 $ 65 $ 45 Variable costs per unit...
Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions: Case 1 2 3 4 Alpha Division: Capacity in units 55,000 309,000 108,000 210,000 Number of units now being sold to outside customers 55,000 309,000 83,000 210,000 Selling price per unit to outside customers $ 100 $ 40 $ 65 $ 43 Variable costs per unit...
Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI). Assume the following information relative to the two divisions: Case 2 4 50,000 283,000 103,000 195,000 50,000 283,000 78,000 195,000 Alpha Division: Capacity in units Number of units now being sold to outside customers Selling price per unit to outside customers Variable costs per unit Fixed costs per unit (based on capacity) Beta Division: Number...
Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROl). Assume the following information relative to the two divisions Case Alpha Division: Capacity in units Number of units now being sold to 51,000 292,000 107,000 205, 000 82,000 205, 000 43 outside customers Selling price per unit to outside 51,000 292,000 customers Variable costs per unit Fixed costs per unit (based on $ 102 $...
Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions: Case 1 2 3 4 Alpha Division: Capacity in units 54,000 297,000 107,000 207,000 Number of units now being sold to outside customers 54,000 297,000 81,000 207,000 Selling price per unit to outside customers $ 100 $ 44 $ 67 $ 47 Variable costs per unit...
Setting Transfer Prices --Market Price versus Full Cost Ardmore, Inc., manufactures heating and air conditioning units in its six divisions. One division, the Components Division, produces electronic components that can be used by the other five. All the components produced by this division can be sold to outside customers; however, from the beginning, about 70 percent of its output has been used internally. The current policy requires that all internal transfers of components be transferred at full cost. Recently, Cynthia...