Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question-
Hamid Jones is a regional manager of Solar Sparks Corporation, an alternative energy firm developing, manufacturing, and exploiting photovoltaic technologies. Hamid is in charge of the European unit of Solar Sparks. His unit's sole activity is to manufacture and sell Wafers. The unit manufactures 270,000 Wafers and is operating at 90 percent of theoretical capacity. The European unit currently sells these Wafers to outside customers at £100 per Wafer. The European unit incurs £25 in variable manufacturing costs per Wafer and £5 in variable selling costs when selling to outside buyers. The unit also incurs £1,350,000 in total fixed costs. The European unit could produce at up to 95 percent of its theoretical capacity without disruptions to current production or the need of additional investment. Hamid does not plan (nor have the resources) to make any investments in additional capacity in the foreseeable future. Jacob Kane, another regional manager of Solar Sparks, is in charge of the North American unit of Solar Sparks. Jacob has asked the Hamid to supply 50,000 Wafers from the European unit to the North American unit. The North American unit manufactures and sells Modules, and Wafers are a key input. The North American unit is currently operating at 50 percent of practical capacity due to a low supply of Wafers. The unit utilizes 100,000 Wafers to manufacture 400,000 Modules. Jacob has offered to pay Hamid's unit £60 per Wafer for the 50,000 Wafers (expected to yield 200,000 new Modules). At the North American unit, the full-absorption cost to manufacture and sell a Module currently consists of £40 for parts in addition to the cost of the Wafers, £30 for other variable costs per unit, and an allocation of £10 in fixed costs. The production of additional Modules would not alter the variable costs per unit and would not require any changes to fixed costs (the North American unit would be able to utilize currently idle capacity).Based on target costing, the manager of the North American unit has decided that a price higher than £60 per Wafer would be infeasible based on the expected selling price of the additional Modules. Solar Sparks evaluates managers on the basis of pretax ROI of the manager's unit (ignore taxes).
Required:
Additional information-
This question belongs to Accounting Basics and it discusses about calculation of estimated selling price and minimum transfer price for a company.
swartz publishing identified the following overhead activities their respective costs and their cost drivers to produce
Pierson Corporation owned 10,000 shares of Hunter Corporation. These shares were purchased in 2007 for $90,000. On November 15, 2011, Pierson declared a property dividend of one share of Hunter for every 10 shares of Pierson held by a stockholder.
flat company currently produces cardboard voxes in an automated process. expected production per month is 40000 units.
Characteristics of a partnership - List the seven items that would need to be incorporated into the written partnership agreement.
the following unadjusted trial balance is for adams construction co. as of the end of its 2011 fiscal year. the june 30
perdue company purchased equipment on april 1 2012 for 270000. the equipment was expected to have a useful life of
Financial statements are useless
quarter foods began its operations january 1 2014. as its food does not go bad quarter foods return policy is that
Accounting Cycle. Financial statements are a product of the accounting cycle. Think about two different companies: a manufacturing company, and a retail company. Why would different companies have different accounting cycles? Would you expect the ..
the following information is available for kessler company after its first year of operationsincome before
1 company as revenues are 300 on invested capital of 240. expenses are currently 70 of sales. if angelo company can
Tyneka inherited 1,000 shares of Aqua, Inc. stock from Joe. Joe's basis was $35,000, and the fair market value on July 1, 2012 (the date of death) was $45,000. The shares were distributed to Tyneka on July 15, 2012. Tyneka sold the stock on Ju..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd