advance costing

Project Description:

argonne division of gemini corporation is located in united state. its effective income tax rate is 30%. another division of gemini, calcia, is located in canada where the income tax rate is 42%. calcia manufacturers, among other things, an intermediate product for argoe called ip- 2007. calcia operates at capacity and makes 15,000units of ip-2007 for argone each period, at a a variable cost of $60 per unit. assume that there are no outside customers for ip-2007. because the ip-2007 must be shipped from canada to the united states, it costs calcia an additional $4 per unit to ship the ip-2007 to argone. there are no direct fixed costs for ip-2007. calcia also manufactures other products. a product similar to ip-2007 that argone could use as a substitute is available in the united states for $75 per unit
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Project Stats:

Price Type: Negotiable

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