Babcock company manufactures fast-baking ovens in the united states at a production cost of $500 per unit and sells them to uncontrolled distributors in the united states a wholly owned sales subsidiary in canada. babcock’s u. s. distributors sell the ovens to restaurants at a price of $1,000, and its canadian subsidiary sells the oven at a price of $1,100. other distributors of ovens to restaurants in canada normally earn a gross profit equal to 25 percent of selling price. babcock’s main competitor in the united states sells fast-baking ovens at an average 50 percent markup on cost. babcock’s canadian sales subsidiary incurs operating costs, other than cost of goods sold, that average $250 per oven sold. the average operating profit margin earned by canadian distributors of fast-baking ovens is 5 percent.
which of the following would be an acceptable transfer price under the resale price method?
(a) $700
(b) $750
(c) $795
(d) $825

Arriving and delivering a load of company executives for a business meeting at a destination far from home base requiring an overnight stay, a company’s pilot requested approval from the company finance office to pay to either have the company’s jet brought into the fbo's hangar overnight to protect it from a forecast snowfall or to have it de-iced by the fbo the following morning well-before scheduled departure. the company was under considerable financial pressure at the time, and the pilot’s requests were denied because of the cost. so, early the following morning, the pilot was up on the wing of the jet sweeping off an accumulation of snow and ice with a borrowed push broom in preparation for the scheduled departure with the executives, but slipped and fell to the ground, suffering a broken neck. the business was organized as a limited partnership, owned by 3 limited partners and one general partner. as a cost-saving measure, the company had dropped its workers’ compensation insurance before the accident. analyze the potential liability for the pilot’s injuries of each of the following, showing your reasoning clearly: the company the general partner the limited partners analyze how the outcome would have been different, if the business had been organized as a corporation and observed all of the formalities to legitimize its corporate status. analyze how the outcome would have been different, if the pilot had been covered by workers’ compensation insurance.

Two products, qi and vh, emerge from a joint process. product qi has been allocated $34,300 of the total joint costs of $55,000. a total of 2,900 units of product qi are produced from the joint process. product qi can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,900 and then sold for $13 per unit. if product qi is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?

Over the past year, three of the star salesmen at family resorts international's corporate office have been lured away to competitors. on top of that, karina, the general manager of the sales department, has noticed that most employees come in, do their jobs, and leave. family resorts offers a good salary, benefits, and tuition reimbursement, as well as a number of development and training programs. most employees seem contented enough, but karina would like to do something to increase the level of engagement among her staff. what do you think karina should do?