Question: The materials used by the Multinomah Division of Isbister Company
The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $ 90 per unit. These same materials are produced by the Pembroke Division. The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $ 75 per unit. The division is currently producing 120,000 units and has capacity of 150,000 units. The two divisions have recently negotiated a transfer price of $ 82 per unit for 15,000 units. By how much will each division’s income increase as a result of this transfer?
Relevant QuestionsPartially completed budget performance reports for Maguire Company, a manufacturer of air conditioners, are provided on the shown below.a. Complete the budget performance reports by determining the correct amounts for the ...Wild Sun Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared:The service department charge rate for the ...Data for Magnum Company are presented in the following table of rates of return on investment and residual incomes:Determine the missing items, identifying each item by the appropriateletter.A condensed income statement for the Commercial Division of Maxell Manufacturing Inc. for the year ended December 31, 2014, is as follows: Sales .............. $ 3,500,000Cost of goods sold ......... 2,480,000Gross profit ...Rambotix Company has two divisions, the Semiconductor Division and the X- ray Division. The X- ray Division may purchase semiconductors from the Semiconductor Division or from outside suppliers. The Semiconductor Division ...
Post your question