If you eliminate a division usually You lose money You eliminate fixed costs You make money...
Division A has variable manufacturing costs of $53 per unit and fixed costs of $14 per unit. Assuming that Division A is operating significantly below capacity, what is the optimal transfer price of an internal transfer when the market price is $80? $28. $27. $53. $67. (Pt 2) Division B has variable manufacturing costs of $58 per unit and fixed costs of $14 per unit. Assuming that Division B is operating significantly below capacity, what is the opportunity cost of...
Division A has variable manufacturing costs of $51 per unit and fixed costs of $11 per unit. Assuming that Division A is operating significantly below capacity, what is the opportunity cost of an internal transfer when the market price is $76?
Net Income Increase (Decrease) Continue Eliminate $ $ $ Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed $ $ $ Net income (loss) tA tA Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. Veronica made the following presentation to Dunn's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is...
Division A has variable manufacturing costs of $61 per unit and fixed costs of $14 per unit. Assuming that Division A is operating at capacity, what is the opportunity cost of an internal transfer when the market price is $83? Multiple Choice $22. $75. $28. $61.
Hot Doggy Dogg has three divisions. Revenues, variable costs, and fixed costs for each division are presented below. Hot Doggy Dogg is thinking of shutting down the Relish division, since it is unprofitable, and has been so for the past five years. Hot Dogs Buns Relish Revenue $7,500,000 5,200,000 $1,400,000 Variable Costs 750,000 1,000,000 820,000 Fixed Cost 4,200,000 2,300,000 750,000 Profit $2,550,000 $1,900,000 $(170,000) If the Relish division is shut down, all its fixed costs will be avoidable except $80,000...
(PT 1) Division A has variable manufacturing costs of $65 per unit and fixed costs of $14 per unit. Assuming that Division A is operating at capacity, what is the optimal transfer price of an internal transfer when the market price is $82? (PT 2) Division A has variable manufacturing costs of $68 per unit and fixed costs of $17 per unit. Assuming that Division A is operating significantly below capacity, what is the optimal transfer price of an internal...
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Division A has variable manufacturing costs of $53 per unit and fixed costs of $14 per unit. Assuming that Division A is operating at capacity, what is the optimal transfer price of an internal transfer when the market price is $80? O $28. O $27. OO
3 – A2 Division of Mixed Costs into Variable and Fixed Components Molly Flutie, president of First Tool, Co., has asked for information about the cost behavior of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available: Month Machine Hours Support Costs May 1,700 $ 22,000 June 1,600 21,000 July 1,500 19,500 August 1,400 18,500 September 1,300 18,000...
3 – A2 Division of Mixed Costs into Variable and Fixed Components Molly Flutie, president of First Tool, Co., has asked for information about the cost behavior of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available: Month Machine Hours Support Costs May 1,700 $ 22,000 June 1,600 21,000 July 1,500 19,500 August 1,400 18,500 September 1,300 18,000...