26 - $400 Processing 500 × $0.60 300 Total fixed costs 700...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
0–100 $120 101–200 $155 201–1,000 $195 22.29 (30-35 min.) Effect of alternative transfer-pricing methods on division operating income. 1. Revenues, 500 pounds × $5 $2,500 Variable costs: Harvesting, 1,000 × $0.20 $200 Processing, 500 × $0.80 400 Total variable costs 600 Contribution margin 1,900 Fixed costs: Harvesting, 1,000 × $0.40
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $400 Processing, 500 × $0.60 300 Total fixed costs 700 Operating income $1,200 2. a. 150% of Full Cost Harvesting Division to Processing Division = 1.5 × ($0.20 + $0.40) = $0.90 per pound of raw tuna b. Market Price Harvesting Division to Processing Division = $1.00 per pound of raw tuna...
View Full Document

This note was uploaded on 02/05/2012 for the course ACCOUNTING acct 504 taught by Professor Dehmal during the Spring '10 term at DeVry Pittsburgh.

Ask a homework question - tutors are online