39 - 22-35(20 min.)Ethics, transfer pricing.1.Contribution...

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Unformatted text preview: 22-35(20 min.)Ethics, transfer pricing.1.Contribution margin for 10,000 units of R47 if variable costs are $14 and $16 per unit, respectively, are as follows:VariableVariableCosts ofCosts of$14 per Unit$16 per UnitTransfer price at 200% of variable costs$ 28$ 32Variable costs per unit1416Contribution margin per unit$ 14$ 16Contribution margin for 10,000 units$14 10,000; $16 10,000$140,000$160,0002.In assessing the situation, the specific Standards of Ethical Conduct for Management Accountants, described in Chapter 1 that the management accountant should consider are listed below.CompetenceClear reports using relevant and reliable information should be prepared. Reports prepared on the basis of incorrectly identifying variable costs would violate the management accountants responsibility to competence. It is unethical for Lasker to suggest that Tanner should change the variable cost numbers that were prepared for costing product R47 and, hence, the transfer price for R47. The methodology to...
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39 - 22-35(20 min.)Ethics, transfer pricing.1.Contribution...

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