1-nagerial Accounting Ara SınavıTata Group has many subsidiaries. The managers of two subsidiaries, Ibrahim and Maria, come together to make adeal on the price of decorative lamps. Ibrahim can purchase the lamps from another company at $79. Maria can sellthe lamps at $60 and the variable cost of the lamp is $48. a.) If Maria's company has excess capacity, what might bethe deal price? b.) If Maria's company doesn't have excess capacity, what might be the deal price? c.) If Ibrahim wantsto buy 1500 special lamps and wants some special additions to the lamp which cause $6 increase in cost. Marianeeds to forgo the sales of 2000 regular lamps if she accepts this offer. What is the minimum transfer price forMaria?4GÖKHAIKalar

The transfer price between two subsidiaries depends on the available excess capacity, current market…

Answered: 1- Tata Group has many subsidiaries.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Do problem 4, a through h.
8. Demand for a product is q = 100 – p and industry marginal cost is 40. Firms set competitive prices. One firm wishes to buy up its competition and become a monopoly, arguing that its costs would go down to a marginal cost of 20. Would the mergers-to-monopoly improve efficiency?
19) Hopner Products enters into a contract with Tulles to sell three different products. The total transaction price is $370,000. Each of the products is a separate performance obligation. Based on the information presented in the table, what is the allocated transaction price of product Z using the expected-cost-plus-a-profit margin approach? (Round intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest whole number.) Product X Y Z A) $159,390 B) $94,868 C) $123,333 D) $185,000 Standalone Price $150,000 $110,000 Not Available Market Price Forecasted Cost $130,000 $100,000 $160,000 $85,000 $100,000 $140,000
Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $66,000 and earn an additional $13,000 if Highgate achieves $130,000 of cost savings. Leo estimates a 70% chance that Highgate will achieve $130,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract? Transaction price for the contract ?
7. If the company have been selling its rubber glove at an avverage price of RM 0.40 per pair, what could be the lowest price that company could accept for a special order of say 500,000,000 gloves if the company could create the cpacity conveniently without increasing its operating costs ?
buying and sellingABC Company offers to fill an order for goods at P 25,800.00 less 25% and 25 %, terms n/30. On the other hand, XYZ Corporation offers P 25,000.00 less 35%, 3%, and 2%, terms 8/10, n/30: on the same order. Assuming that Mr Cruz will pay cash, which is the better offer?
p4-8
Suppose that you work for a Kentucky Bourbon distillery and you export to the European Union. The price of the bourbon is 45EUR and the cost is 20USD. What will happen to your profits if the USD appreciates? Assume that the pass-through rate for Bourbon is 45%. (your company is American and your home currency is USD). Fall Remain unchamged Increase Not enough information
Velstrom Ltd is considering outsourcing one of its products rather than producing it in its factory. The business allocates part of the total rental charge of the factory, based on floor area, on the section responsible for making the product. The section bears a charge of £20,000 per year. If the section were closed, the floor space released would be used for warehousing and, as a result, the business would give up the tenancy of an existing warehouse for which it is paying £25,000 a year. SO what is the answer
Hanshaben
Or it can expressed as the investor sells goods to the associate for 65,000 (selling price), the selling price includes a mark up on cost of 30%. Profit made by seller= 65,000 * 0.3/1+0.3= 15,000 My instructor told me that in order to solve this problem, I need to convert the markup into the gross profit and then multiply it by the selling price. I didn’t get the idea of converting the markup into GP. Refering to the question, that is 0.3/1+0.3. If possible, please analyse this bit. That is all I need Thanks

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