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!
Ajax Division of Carlyle Corporation produces electric motors, 20% of which are sold to Bradley Division of Carlyle and the remainder to outside customers. Carlyle treats its divisions as profit centers and allows division managers to choose their sources of sale and supply. Corporate policy requires that all interdivisional sales and purchases be recorded at variable cost as a transfer price. Ajax Division's estimated sales and standard cost data for the year ending December 31, 2005, based on the full capacity of 100,000 units, are as follows:
Bradley
Outsiders
Sales
$ 900,000
$ 8,000,000
Variable costs
(900,000)
(3,600,000)
Fixed costs
(300,000)
(1,200,000)
Gross margin
$(300,000)
$3,200,000
Unit sales
20,000
80,000
Ajax has an opportunity to sell the above 20,000 units to an outside customer at a price of $75 per unit during 2005 on a continuing basis. Bradley can purchase its requirements from an outside supplier at a price of $85 per unit.
Assuming that Ajax Division desires to maximize its gross margin, should Ajax take on the new customer and drop its sales to Bradley for 2005, and why?
tara incorporates her sole proprietorship transferring it to recently formed black corporation. the assets transferred
Are there disclosure requirements in the United States that govern the reporting practices of foreign currency transactions? Provide example
Find out the internal rate of return promised by the new truck to the nearest whole percent. In addition to the data already provided, assume that due to the unique warming racks, the truck will have a $13,000 salvage value at the end of six years...
Will market efficiency evolve on its own without government intervention? Why or why not and what role do ethics play in market efficiency?
Prepare journal entries to record the preceding transactions on Adjusto's books, including the adjusting entries at the end of 2007.
Prepare T-accounts to show the ending balances in Accounts receivable and Allowance for uncollectible accounts. Compute net accounts receivable at October 31. How much does Windy Mountain expect to collect?
Which of the subsequent groups constitute a controlled group? (Any stock not listed below is held by unrelated individuals every owning less than 1% of the outstanding stock.) For brother-sister corporations, which definition applies?
Purchasing agents with real or potential conflicts of interest should not process purchase orders for the vendor with whom they have a relationship
Which method, as presented in your text, should be used in this instance and why? Does it make a difference if the South Carolina plant has no idle capacity?
Which depreciation method would result in the highest amount of income tax expense being paid in the first year of an asset's useful life
Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded.
Prescribe specific auditing procedures to detect fraud concerning inventories and accounts receivable of companies engaged in interstate commerce.
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