User Account

All Pages

Discuss difference between the maximum and minimum prices

Assignment Help Accounting Basics
Reference no: EM131807201

Tito Motors Ltd operates as a decentralised multidivisional company. Division X purchases T4 components from the Division Y. Division Y's incremental cost for manufacturing the T4 components is $156 per unit. Division Y is currently working at 69% capacity selling all its production to Division X. The current market price of the T4 components is $231 per unit. If the transfer price is determined as a price that splits the difference between the maximum and minimum prices from the divisions' standpoint. What would be the resulting transfer price for T4 components (rounded using two decimals)?

Reference no: EM131807201

Questions Cloud

Compute the capitalized cost of the dam : A small dam was constructed for $2 million. The annual maintenance cost is $15,000. If interest is 5%, compute the capitalized cost of the dam
Maintain an income statement for the year : Prepare an income statement for the year. Kingbird, Inc. did not issue any new stock during the year. Kingbird, Inc.
Scheduling decisions are the final step in transformation : Scheduling decisions are the final step in the transformation proves before actual output occurs.
What is the maximum annual withdrawal : Equal annual withdrawals are to be made from the account, beginning one year from now and continuing forever. What is the maximum annual withdrawal?
Discuss difference between the maximum and minimum prices : If the transfer price is determined as a price that splits the difference between the maximum and minimum prices from the divisions' standpoint
Describe objectively what happened in the learning process : Evaluate the effectiveness and your usefulness of the learning experience - Describe objectively what happened in the learning process
Why is it important for companies entering overseas markets : Why is it important for companies entering overseas markets to conduct a thorough external environmental (PESTEL) analysis?
What amount of money deposited : What amount of money deposited 50 years ago at 8% interest would provide a perpetual payment of $10,000 a year beginning this year?
What would be the difference in operating income after tax : What would be the difference in operating income after tax for Diamond Ltd if transfer price

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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