User Account

All Pages

The trailer department of baxter bicycles makes bike trailer

Assignment Help Managerial Accounting
Reference no: EM13907466

The Trailer department of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $ 200 each. Each trailer incurs $ 80 of variable manufacturing costs. The Trailer department has capacity for 40,000 trailers per year, and incurs fixed costs of $ 1,000,000 per year.

Required: 

1. Assume the Assembly division of Baxter Bicycles wants to buy 15,000 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycle's divisions? Explain.

2. Assume the Trailer division currently only sells 20,000 trailers to outside customers, and the Assembly division wants to buy 15,000 trailers per year from the Trailer division. What is the range of acceptable prices that could be used on transfers between Baxter Bicycle's divisions? Explain. 

3. Assume transfer prices of either $ 80 per trailer or $ 140 per trailer are being considered. Comment on the preferred transfer prices from the perspectives of the Trailer division manager, the Assembly division manager, and the top management of Baxter Bicycles.

Reference no: EM13907466

Questions Cloud

Explain how the firm''s dividend policy and level : Explain how the firm's dividend policy and level of debt affect its ability to grow over time.
Thinking of martha graham''s artistic leadership style : Thinking of Martha Graham's artistic leadership style,  discuss one leadership characteristic or quality she displayed that you find most relevant to your own leadership in your work or your community. Analyze why it was significant  in the leader's ..
How does the media affect criminal justice policies? : How does the media affect criminal justice policies?
Discuss the dividend payment requirements of a common stock : Discuss the dividend payment requirements of a common stock versus preferred stock, in terms of which type of stock has a primary claim on dividend distributions. Explain why the common stock investor demands a higher dividend rate.
The trailer department of baxter bicycles makes bike trailer : The Trailer department of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo.
We learn from gorton that it is not possible to prove : We learn from Gorton that it is not possible to prove that had Lehman Brothers been bailed out by the government or the Federal Reserve the financial crisis of 2008 would not have occurred. This is an example of not being able to prove the "counterfa..
What is the distribution of the time till the next epoch : What is the distribution of the time till the next epoch of N2(t) and what is the probability that the next epoch of N (t) is an epoch in N1(t)?
The limited liability of shareholders : According to Gorton; The limited liability of shareholders in a business creates moral hazard because owners can take risks that can benefit them at the potential expense of creditors. true or false ? why ?
Over time banks have become more efficient at using bank : Over time banks have become more efficient at using bank capital and thus use less of it relative to the assets they fund. The capital ratios in 2009 of US banks were lower  than they were in the 1980s and 1990s. true or false ? why

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Prepare all required journal entries

Prepare all required journal entries, being certain to indicate the type of fund in which each entry would be made.

  Compute the total equivalent units

Prepare a T-account for Work in Process Inventory to show activity during June, including the June 30 balance.

  The general fund of middleville has presented you with the

the general fund of middleville has presented you with the following trial balance as of june 30 2011.debitscreditscash

  Assume that andrew mason of groupon decides to launch

Assume that Andrew Mason of Groupon decides to launch a new Website to market discount services to consumers.

  Depreciation is calculated using the straight-line method

Study the information given below and determine which of the two investment opportunities It should choose. Motivate your answer by comparing the net present value of each alternative.

  Summarize the cost management from article

What are the major cost drivers involved in the school's educational process? How do you think the school might attempt to control costs? Describe how the Business School adds value and who receives this value.

  Marginal analysis for optimal decisions

Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing air problem in its mines.

  Create general ledger accounts for each account

Create general ledger accounts for each account

  Sales volume variance analysis-master vs flexible budget

During the period, actual sales totaled 58,000 units. Prepare a variance report to show the difference between the master budget and the flexible budget.

  Determine the cost of jobs

Evaluate the total cost of the work in process inventory on January 31. Determine the cost of jobs completed during January, and show the proper journal entry to reflect job completion.

  Following is the adjusted trial balance of post company

following is the adjusted trial balance of post company. based on this information prepare a balance sheet income

  Main components of cvp

Write down the main components of cost-volume-profit (CVP) analysis. How does a CVP income statement aid management make decisions?

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