The Heating Division of Kobe International produces a heating element that it sells to its customers...
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The Heating Division of Kobe International produces a heating element that it sells to its customers for $42 per unit. Its variable cost per unit is $22, and its fixed cost per unit is $9. Top management of Kobe International would like the Heating Division to transfer 15,100 heating units to another division within the company at a price of $32. Assume that the Heating Division has sufficient excess capacity to provide the 15,100 heating units to the other division. What is the minimum transfer price that the Heating Division should accept? Minimum transfer price $ Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $39, direct labor $30, variable manufacturing overhead $13, fixed manufacturing overhead $46, variable selling and administrative expenses $14, and fixed selling and administrative expenses $28. Its desired ROI per unit is $30.60. Compute its markup percentage using a total-cost approach. (Round answer to 2 decimal places, e.g. 10.50%) Markup percentage Jaymes Corporation produces high-performance rotors. It expects to produce 30,000 rotors in the coming year. It has invested $4,312,500 to produce rotors. The company has a required return on investment of 16%. What is its ROI per unit? ROI per unit $ % Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $18, direct labor $7, variable manufacturing overhead $4, fixed manufacturing overhead $10, variable selling and administrative expenses $2, and fixed selling and administrative expenses $13. Using a 45% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.) Target selling price The Heating Division of Kobe International produces a heating element that it sells to its customers for $42 per unit. Its variable cost per unit is $22, and its fixed cost per unit is $9. Top management of Kobe International would like the Heating Division to transfer 15,100 heating units to another division within the company at a price of $32. Assume that the Heating Division has sufficient excess capacity to provide the 15,100 heating units to the other division. What is the minimum transfer price that the Heating Division should accept? Minimum transfer price $ Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $39, direct labor $30, variable manufacturing overhead $13, fixed manufacturing overhead $46, variable selling and administrative expenses $14, and fixed selling and administrative expenses $28. Its desired ROI per unit is $30.60. Compute its markup percentage using a total-cost approach. (Round answer to 2 decimal places, e.g. 10.50%) Markup percentage Jaymes Corporation produces high-performance rotors. It expects to produce 30,000 rotors in the coming year. It has invested $4,312,500 to produce rotors. The company has a required return on investment of 16%. What is its ROI per unit? ROI per unit $ % Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $18, direct labor $7, variable manufacturing overhead $4, fixed manufacturing overhead $10, variable selling and administrative expenses $2, and fixed selling and administrative expenses $13. Using a 45% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.) Target selling price
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Transfer Pricing for Kobe International There are two approaches to determine the minimum transfer p... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1118334263
2nd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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