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Division A offers its product to outside markets for $30. It incurs variable costs of $11 per unit and fixed costs of $75,000 per month based on monthly production of 4,000 units. Division B can acquire the product from an alternate supplier for $31 per unit or from Division A for $30 plus $2 per unit in transportation costs in addition to the transfer price charged by Division A. Required a. What are the costs and benefits of the alternatives available to Division A and Division B with respect to the transfer of Division A's product? Assume that Division A can market all that it can produce. b. How would your answer change if Division A had idle capacity sufficient to cover all of Division B's needs?
the following are selected accounts and balances from the records of ganster corporation on june 30 2012. common stock
The pickle department of a major food manufacturer has an overhead rate of $5 per direct-labor hour, based on expected variable overhead of $150,000 per year, expected fixed overhead of $350,000 per year, and expected direct-labor hours of 100,000..
kingston corporations accumulated depreciation-furniture account increased by 10200 while 6600 of patent amortization
Prepare a multi-step income statement for the Appully Company (a clothing retailer) for the year ending December 31, 2003 given the information
Clifford Company's comparative balance sheet included dividends payable of $80,000 at December 31, 2009, and $100,000 at December 21, 2010. Dividends declared by Clliford during 2010 amounted to $400,000.
a building that was purchased on december 31 2000 for 2500000 was originally estimated to have a life of 50 years with
profitability ratios polly esther dress shops inc. can open a new store that will do an annual sales volume of 960000.
Jodz Company had the following stockholders' equity as of January 1, 2004. Prepare the journal entries to record the treasury stock transactions in 2004, assuming Jodz uses the cost method.
kelm company purchased a new machine on october 1 2010 at a cost of 142300. the company estimated that the machine will
preble company manufactures one product. its variable manufacturing overhead is applied to production based on direct
franco and elisa share income equally. during the current year the partnership net income was 40000. franco made
They made major capital improvements through their 10-year ownership, which totaled $50,000. What is their recognized gain
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