Transfer pricing aulman inc. has a number of divisions including a furniture division and a motel division. the motel division owns and operates a line of budget motels located along major highways. each year, the motel division purchases furniture for the motel rooms. currently, it purchases a basic dresser from an outside supplier for $60. the manager of the furniture division has approached the manager of the motel division about selling dressers to the motel division. the full product cost of a dresser is $29. while the furniture division has been operating at capacity (50,000 dressers per year) and selling them for $60 each, it expects to produce and sell only 40,000 dressers for $60 each next year. the furniture division incurs variable costs of $15 per dresser. the motel division needs 10,000 dressers per year; the furniture division can make up to 50,000 dressers per year. the company policy is that all transfer prices are negotiated by the divisions involved. required: 1. what is the maximum transfer price? $ which division sets it? 2. what is the minimum transfer price? $ which division sets it? 3. suppose that the two divisions agree on a transfer price of $31. what is the benefit for the furniture division? for the motel division? for aulman inc. as a whole? benefit to furniture division $ benefit to motel division $ benefit to company $ check my work3 more check my work uses remaining. previous
Answers: 2
Business, 22.06.2019 09:50
Beck company had the following accounts and balances at the end of the year. what is net income or net loss for the year? cash $ 74 comma 000 accounts payable $12,000 common stock $21,000 dividends $12,000 operating expenses $ 13 comma 000 accounts receivable $ 49 comma 000 inventory $ 47 comma 000 longminusterm notes payable $33,000 revenues $ 91 comma 000 salaries payable $ 30 comma 000
Answers: 1
Business, 22.06.2019 19:00
20. to add body to a hearty broth, you may use a. onions. b. pasta. c. cheese. d. water.
Answers: 2
Business, 22.06.2019 23:30
Which career pathways require workers to train at special academies? a.emts and emergency dispatchers b.crossing guards and lifeguards c.police officers and firefighters d.lawyers and judges
Answers: 3
Business, 23.06.2019 00:00
Both a demand curve and a demand schedule show how a. prices affect consumer demand. b. consumer demand affects income. c. prices affect complementary goods. d. consumer demand affects substitute goods.
Answers: 2
Transfer pricing aulman inc. has a number of divisions including a furniture division and a motel di...
Mathematics, 21.07.2019 08:40
Business, 21.07.2019 08:40
Mathematics, 21.07.2019 08:40
History, 21.07.2019 08:40
Biology, 21.07.2019 08:40
Health, 21.07.2019 08:40
Advanced Placement (AP), 21.07.2019 08:40
English, 21.07.2019 08:40
Biology, 21.07.2019 08:40