How much would dart industries total income

Assignment Help Accounting Basics
Reference no: EM132104358

Question - Decision on Transfer Pricing

Materials used by the Instrument Division of Dart Industries are currently purchased from outside suppliers at a cost of $180 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $125 per unit.

a. If a transfer price of $145 per unit is established and 40,000 units of materials are transferred, with no reduction in the Components Division's current sales, how much would Dart Industries' total income from operations increase?

b. How much would the Instrument Division's income from operations increase?

c. How much would the Components Division's income from operations increase?

Reference no: EM132104358

Questions Cloud

Identify one religion that you find the most interesting : Among the religions we discussed this week, identify one religion that you find the most interesting. Explain your response.
Why is it important in the study of religion : Select ONE (1) category from the completed World View Chart. Provide a rationale for choosing this category. What is compelling about this category?
Describe your approach to care : Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.
Defines the risk management policy for all future projects : Construct a manual for your company that defines the Risk Management Policy for all future projects.
How much would dart industries total income : If a transfer price of $145 per unit is established and 40,000 units of materials are transferred, how much would Dart Industries' total income
Define clear distinction between globalism and globalization : Describe and explain a clear distinction between "globalism" and "globalization" after viewing the video and reading the article.
What are the company marginal and average tax rates : The Talley Corporation had a taxable income of $345,000. What are the company's marginal and average tax rates on taxable income
Difference between internal and external setup procedures : What is the difference between internal and external setup procedures? Give examples of both.
Implement global change management initiatives : Implement global change management initiatives that support knowledge exchange and innovation.

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.

  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!

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