Ivanhoe Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ivanhoe Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its return on investment. Vancouver has the capacity to manufacture 250,000 units of component TR222. Vancouver's variable costs are $150 per unit. Kamloops uses component TR222 in one of its products. Kamloops adds $90 of variable costs to the component and sells the final product for $465. Consider the following independent situations: Of the 250,000 units of component TR222 it can produce, Vancouver can sell 200,000 units on the open market at a price of $250 per unit. Kamloops is willing to buy an additional 75,000 units. What should the transfer price be? (Round answer to 2 decimal places, e.g. 52.75.) Transfer price $ per unit Ivanhoe Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its return on investment. Vancouver has the capacity to manufacture 250,000 units of component TR222. Vancouver's variable costs are $150 per unit. Kamloops uses component TR222 in one of its products. Kamloops adds $90 of variable costs to the component and sells the final product for $465. Consider the following independent situations: Of the 250,000 units of component TR222 it can produce, Vancouver can sell 200,000 units on the open market at a price of $250 per unit. Kamloops is willing to buy an additional 75,000 units. What should the transfer price be? (Round answer to 2 decimal places, e.g. 52.75.) Transfer price $ per unit
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Problems 113 122. The purpose of these problems is to keep the material fresh in your mind so that you are better prepared for later sections, a final exam, or subsequent courses such as calculus. X...
-
Delux Design Company creates radio and television advertising for local businesses in the twin cities. The following alphabetical list shows Delux Design's account balances as of January 31, 2011:...
-
The gyromagnetic ratio of 31P is 1.08 x 108 rad s-1 T-1. This nucleus shows a wide range of shifts, covering some 700 ppm. Suppose that the transmitter is placed in the middle of the shift range and...
-
Certain production equipment used by Lazer Inc. has become obsolete relative to current technology. The company is considering whether it should keep or replace its existing equipment. To aid in this...
-
The capital investment committee of Cross Continent Trucking Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows:...
-
The decision area of supply chain and inventory management. If you work at the transportation logistics operations of your organization, What would you consider as the inventory in your operations?...
-
The junior marketing manager would like you to assist in providing information for a marketing strategy she is proposing at the annual general meeting next month. She is focusing only on a new...
-
What more radical solutions do you think should be considered?
-
Continuous improvement is not really useful as it just tinkers with existing operations and does not look for significant gains. To what extent do you think this is true?
-
The primary difference between financial accounting and managerial accounting is that a. Financial accounting is used by internal parties while managerial accounting is used by external parties. b....
-
Performance measures can give conflicting views changes that improve some measures, make others worse. How can you decide whether the overall effect is beneficial or not?
-
It is easy to find improvements in any supply chain. So why have the managers not already made them?
-
Identify and describe THREE (3) accounting profession ethical dilemmas after systematically reviewing recent media articles/postings/legislations/reports/journal articles/broadcast or social media....
-
Which of the following raises the credibility of areport? Which of the following raises the credibility of a report? Multiple Choice avoiding predictions avoiding the use of cause-effect statements...
-
Show that the graph whose adjacency matrix is below has no cycles. \[ \left(\begin{array}{lllllllll} 0 & 0 & 0 & 0 & 0 & 0 & 0 & 1 & 0 \\ 0 & 0 & 0 & 0 & 0 & 0 & 0 & 1 & 0 \\ 0 & 0 & 0 & 0 & 0 & 0 &...
-
Prove Theorem 1.
-
Show that there is no four-vertex undirected graph with degrees \(d\left(v_{1} ight)=3, d\left(v_{2} ight)=2, d\left(v_{3} ight)=2\), and \(d\left(v_{4} ight)=2\).
Study smarter with the SolutionInn App