Income from operations increase problem

Assignment Help Accounting Basics
Reference no: EM13259460

Materials used by Aro-Products Inc. in producing Division 3'sproduct are currently purchased from outside suppliers at a cost of$15 per unit. However, the same materials are available fromDivision 6. Division 6 has unused capacity and can produce thematerials needed by Division 3 at a variable cost of $12 per unit. A transfer price of $13 per unit is established, and 50,000 units of material are transferred with no reduction in Division 6'scurrent sales. How much would Division 3's income from operations increase?

a. $150,000

b. $50,000

c. $0

d. $100,000

Reference no: EM13259460

Questions Cloud

Compute the standard cell potential : Calculate the standard cell potential for each of the following cells then write the overall reaction. (These rxns are given in reduction order for each half-cell.)
What is the final thermal energy of each gas : 8g of helium at an initial temperature of 280Kinteracts thermally with 7.0g of oxygen at an initial temperature of 550K What is the final thermal energy of each gas
Find the bonds price today and six months from now : Find the bond's price today and six months from now after the next coupon is paid
Shape of the distribution of sample means : what would be the mean, variance, standard deviation and shape of the distribution of sample means? Give reasons for your answers.
Income from operations increase problem : A transfer price of $13 per unit is established, and 50,000 units of material are transferred with no reduction in Division 6'scurrent sales. How much would Division 3's income from operations increase?
Calculate shunt resistance required to increase the range : if a 1mA movement has an internal resistance of 43 ohms, calculate the shunt resistance required to increase its range to 50mA and also 300mA.
Identify the three levels of subscribers to the nasdaq : In behavioral finance studies have revealed 4 basic biases that affect rational decision making. Identify and explain those biases.
Determining the functional currency : Selvey inc is a completely owned subsidiary of parsfield incorporated a us firm. The country where selvey operates is deemed to have a highly inflationary economy under FASB statement no. 52. Therefore,the functional currency is :
Determine the probability that your jelly bean is yellow : Determine the probability that your jelly bean is either black or white. Probability jelly bean is black or white = ?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Calculate overhead variances using variable costing

Which below may solve Dave's concern and still maintain the integrity of a standard costing system and not impact the company's operations. A) Use variable costing to calculate the overhead variances.

  What presumptions can be made about the following

The third generally accepted standard of audit fieldwork requires that auditors obtain sufficient, competent audit evidence to afford a reasonable basis for an opinion regarding the financial statements under examination.

  Analyzing of bad debts and determination

Over the past several years, Jacobian has seen that year-end allowance account has a debit balance before adjustment. The company wants an in-depth analyzes of bad debts and a determination as to which method to use. You have been hired to perform..

  Substantive test of transactions problem

A substantive test of transactions to test the completeness assertion includes?

  Dividends received through the preferred stockholders

The board of directors declared and paid a $5,000 dividend in 2010. In 2011, $24,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2011?

  Targeted operating income

Nichols Company has a selling price of $150 per unit, variable costs $90 per unit and total fixed costs of $300,000. The number of units that Nichols Company must sell to reach targeted operating income of $90,00 is:

  Discuss reasons why corporations invest in securities

Describe the reasons why corporations invest in securities. Describe how the market would be affected if they stopped this practice?

  Why would you select the percentage of sales method

Why would you select the percentage of sales method for calculating doubtful accounts instead of the percentage of receivables method?

  Charged to factory overhead

Separate the variable and fixed elements, using the high-low method. Determine the cost to be charged to the product for the year. Determine the cost to be charged to factory overhead for the year.

  Calculate total you will pay in income and social security

Assuming that you are single and receive no deduction or any other credits, Mr. Wilson has asked you to calculate the total you will pay in income, Social Security, and Medicare taxes for a salary of $94,000.

  Net amount required to retire a bond before maturity

The net amount required to retire a bond before maturity (assuming no call premium and constant interest rates) is the:

  Increase in net operating income

An increase in net operating income (NOPAT) will cause which of the following?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd