14-06Pr_5e

14-06Pr_5e - Fixed Total expenses Income from operations 4....

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Problem 14-6 Name: Section: Score: 0% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) will appear in the row immediately to the right of an incorrect answer. 1. Would the market price of $78 per unit be an appropriate transfer price for Bay Area Scientific, 2. Number of Units x Transfer or - Transferred Market Price Performance Materials Division Communication Technologies Division Total Company Income 3. BAY AREA SCIENTIFIC, INC. Divisional Income Statements For the Year Ended December 31, 2010 Sales: 8,000 units x per unit 1,600 units x per unit 12,000 units x per unit Total sales Expenses: Variable: 9,600 units x per unit 1,600 units x per unit 10,400 units x per unit
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Unformatted text preview: Fixed Total expenses Income from operations 4. Number of Units x Transfer or-Instructions Performance Materials Communication Technologies Transferred x Market Price-Performance Materials Division Communication Technologies Division Total Company Income 5. a. Number of Units Transferred Maximum acceptable transfer price Minimum acceptable transfer price b. If the division managers cannot agree on a transfer price, a price of In this way, each division’s income from operations would increase by the same amount. , Inc.? Variable Cost = Per Unit Total Variable Cost = Increase in Income from Operations Increase in Income from Per Unit = would be the best compromise. Operations...
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This note was uploaded on 05/02/2011 for the course ACC 121 taught by Professor Thomas during the Spring '08 term at Baker MI.

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14-06Pr_5e - Fixed Total expenses Income from operations 4....

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