Business, 28.01.2020 22:51 golffuture666

Teslum inc. has a number of divisions, including the machina division, a producer of high-end espresso makers, and the java division, a chain of coffee shops.
machina division produces the exp-100 model espresso maker that can be used by java division to create various coffee drinks. the market price of the exp-100 model is $950, and the full cost of the exp-100 model is $475.
required:
1. if teslum has a transfer pricing policy that requires transfer at full cost, what will the transfer price be? $ do you suppose that machina and java divisions will choose to transfer at that price?
2. if teslum has a transfer pricing policy that requires transfer at market price, what would the transfer price be? $ do you suppose that machina and java divisions would choose to transfer at that price?
3. now suppose that teslum allows negotiated transfer pricing and that machina division can avoid $135 of selling expense by selling to java division. which division sets the minimum transfer price?
i. what is the minimum transfer price? $
ii. which division sets the maximum transfer price?
iii. what is the maximum transfer price? $
iv. do you suppose that machina and java divisions would choose to transfer somewhere in the bargaining range?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 14:00

Which of the following would not generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. all of the above are functions of inventory.

Answers: 1

Answer

Business, 22.06.2019 19:00

20. to add body to a hearty broth, you may use a. onions. b. pasta. c. cheese. d. water.

Answers: 2

Answer

Business, 22.06.2019 21:20

Label each of the following statements true, false, or uncertain. explain your choice carefully. a. workers benefit equally from the process of creative destruction. b. in the past two decades, the real wages of low-skill u.s. workers have declined relative to the real wages of high-skill workers. c. technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity. d. the apparent decrease in the natural rate of unemployment in the united states in the second-half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.

Answers: 3

Answer

Business, 22.06.2019 23:30

An outside supplier has offered to sell talbot similar wheels for $1.25 per wheel. if the wheels are purchased from the outside supplier, $15,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $45,000 per year. direct labor is a variable cost. if talbot chooses to buy the wheel from the outside supplier, then annual net operating income would:

Answers: 1

Answer

You know the right answer?

Teslum inc. has a number of divisions, including the machina division, a producer of high-end espres...

Questions