Already have an account? Get multiple benefits of using own account!
Login in your account..!
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!
A company specialising in the manufacture and sale of baths. Each bath consists of a main unit plus a set of bath fittings. The company is split into two divisions, A and B. Division A manufactures the bath and Division B manufactures sets of bath fittings. Currently, all of Division A's sales are made externally. Division B, however, sells to Division A as well as to external customers. Both of the divisions are profit centres. The following data is available for both divisions: Division A Current selling price for each bath 450 Costs per bath: Fittings from Division B 75 Other materials from external suppliers 200 Labour costs 45 Annual fixed overheads 7,440,000 Annual production and sales of baths (units) 80,000 Maximum annual market demand for baths (units) 80,000 Division B Current external selling price per set of fittings 80 Current price for sales to Division A 75 Costs per set of fittings: Materials 5 Labour costs 15 Annual fixed overheads 4,400,000 Maximum annual production and sales of sets of fittings (units) 200,000 (including internal and external sales) Maximum annual external demand for sets of fittings (units) 180,000 Maximum annual internal demand for sets of fittings (units) 80,000 The transfer price charged by Division B to Division A was negotiated some years ago between the previous divisional managers, who have now both been replaced by new managers. Head Office only allows Division A to purchase its fittings from Division B, although the new manager of Division A believes that he could obtain fittings of the same quality and appearance for $65 per set, if he was given the autonomy to purchase from outside the company. Division B makes no cost savings from supplying internally to Division A rather than selling externally. Required: (a) Under the current transfer pricing system, prepare a profit statement showing the profit for each of the divisions and for Bath Co as a whole. Your sales and costs figures should be split into external sales and inter-divisional transfers, where appropriate
Within and organization, give an example of a formal group and an informal group. What is the relationship group cohesiveness and effectiveness? When might a highly cohesive group
Industrial Policy The course of action set by the government to influence the development of domestic industrial sectors in particular and the direction of the national organiz
SUMIT Products Ltd. is a company that produces and markets steel cups, teaspoons, knives and forks for the catering industry. The company was established in 1958 in response to the
Can anyone give me an example of a preference matrix?
1. How much of an impact does "maturity" level of the industry or company have on strategy? 2. Can you be innovative in a mature industry? 3. Can you be conservative in an in
In light of the various theories of Strategic Management and Competition touched on in this course (e.g., the Resource Model of the Firm, internal/external analysis, SWOT, Value Ch
What is the present value of $10000 to be received 20 years from now , if the principle is invested at 8% per year, compounded annually ?
To determine the standard working time for a special job, following observation data is collected: Observation 1 2 3 4 5 6 7 8 Time (in second) 17 18 15 14 13 15 16 13 a) If the pe
Which business strategy below does the company Walmart's uses to go global? Elaborated going to China to do business... A) Global standardization strategy B) Localization str
In what ways might the divisionalized forms of most airlines lend themselves to the requirements of alliance membership? In what ways might they be compatible with the organization
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