subject
Business, 06.05.2020 05:05 quan91

Division X has asked Division K of the... Division X has asked Division K of the same company to supply it with 5,950 units of part L433 this year to use in one of its products. Division X has received a bid from an outside supplier for the parts at a price of $27.00 per unit. Division K has the capacity to produce 30,500 units of part L433 per year. Division K expects to sell 26,300 units of part L433 to outside customers this year at a price of $32.00 per unit. To fill the order from Division X, Division K would have to cut back its sales to outside customers Division K produces part L433 at a variable cost of $24.00 per unit. The cost of packing and shipping the parts for outside customers is $2.00 per unit. These packing and shipping costs would not have to be incurred on sales of the parts to Division X.

Required:

a. What is the range of transfer prices within which both the Divisions' profits would increase as a result of agreeing to the transfer of 5,950 parts this year from Division X to Division K? (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response) The Transfer price can be greater than$ but less than $
b. Is it in the best interests of the overall company for this transfer to take place? Yes No c. What is the increase in Company's profit for each unit transferred?

ansver
Answers: 1

Another question on Business

question
Business, 20.06.2019 18:04
Fdr had to resort to deficit spending with his first 100 days to with the recovery. describe what deficit spending was and how fdr felt about it. do you think think this was the right decision at the time, why or why not?
Answers: 1
question
Business, 22.06.2019 02:30
Question 1 which of the following tasks use your roommate as a resource? choose all answers which apply. take order wash the mixer’s bowl and mix the dough spoon cookies onto the tray unload the cookies from the oven pack the cookies 1 points question 2 which of the following tasks use the tray(s) as a resource? choose all answers which apply. take order wash the mixer’s bowl and mix the dough bake the cookies cool the cookies accept payment 1 points question 3 determine the task time for the following tasks. fill integer numbers into the blank (e.g., 5 rather than 5.0) wash and mixing the dough: minute(s)/order spoon cookies onto the tray: minute(s)/order set up timer: minute(s)/order bake: minute(s)/order cool the cookies: minute(s)/order pack the cookies: minute(s)/order accept payment: minute(s)/order 2 points question 4 q4: determine the cycle time for the following resources. fill integer numbers into the blank (e.g., 5 rather than 5.0) kristen (you): minute(s) roommate: minute(s) oven: minute(s) 2 points question 5 what is the capacity rate (in orders/hour) of the roommate? 1 points question 6 what is the capacity rate (in orders/hour) of the whole process? 2 points question 7 how long (in minutes) it takes to process the first order?
Answers: 3
question
Business, 22.06.2019 08:00
Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?
Answers: 1
question
Business, 22.06.2019 11:00
Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld
Answers: 2
You know the right answer?
Division X has asked Division K of the... Division X has asked Division K of the same company to sup...
Questions
question
Mathematics, 29.01.2021 20:00
question
Mathematics, 29.01.2021 20:00
question
Biology, 29.01.2021 20:00
Questions on the website: 13722363