Assume Division A has provided the following information regarding the one product that it manufactures and sells on the outside marketSelling price per unit (on the outside market)Variable cost per unitFixed costs per unit (based on capacity)Capacity in units$ 100$ 60$ 630,000Division A has been offered the opportunity to sell 5,000 units of its only product to another division within the same company. The other division can eitheragree to a transfer price with Division A or purchase a comparable product on the outside market for $100. If Division A is currently selling 27,500 units on theoutside market and the other division chooses to buy 5,000 units on the outside market (rather than agreeing to a transfer price with Division A), what is theimpact on profits for the company as a whole?Multiple ChoiceOProfits would decrease by $100,000Profite unnin darrasco h $70.000

Cost of purchasing units from outside supplier = Nos of units needed*Cost per unit from outside…

Assume Division A has provided the following information regarding the one product that it manufactures and sells on the outside market Selling price per unit (on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units $ 100 $ 60 $ 6 30,000 Division A has been offered the opportunity to sell 5,000 units of its only product to another division within the same company. The other division can en agree to a transfer price with Division A or purchase a comparable product on the outside market for $100. If Division A is currently selling 27,500 units c outside market and the other division chooses to buy 5,000 units on the outside market (rather than agreeing to a transfer price with Division A), what is impact on profits for the company as a whole? Multiple Choice

Assume Division A has provided the following information regarding the one product that it manufactures and sells on the outside market Selling price per unit (on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units $ 100 $ 60 $ 6 30,000 Division A has been offered the opportunity to sell 5,000 units of its only product to another division within the same company. The other division can en agree to a transfer price with Division A or purchase a comparable product on the outside market for $100. If Division A is currently selling 27,500 units c outside market and the other division chooses to buy 5,000 units on the outside market (rather than agreeing to a transfer price with Division A), what is impact on profits for the company as a whole? Multiple Choice

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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D1.
Assume that Steel Division has a product that can be sold either to outside customers on an intermediate market or to Fabrication Division of the same company for use in its production process. The different divisions are evaluated based on their divisional profits. Steel Division:Capacity in units 200,000No. of units being sold on the intermediate market 200,000Selling price per unit on the intermediate market P90Variable cost per unit inclusive of variable selling expense of P370Fixed cost per unit (based on capacity) 13 Fabrication Division:No. of units needed for production 40,000 Purchase price per unit now being paid to as outside supplier…
Please Answer Problem 2 only Please provide the requirements for Product A, B, C, and D. Thank you!
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $45,500 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $27,300 $ 18,200 $ 45,500 Sales value at split-off point $ 30,000 $20,000 $50,000 Costs of further processing $ 24,200 $ 18,500 $ 42,700 Sales value after further processing $ 47,800 $58,300 $ 106,100 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d.…
4. If a transfer price of $340 per unit is negotiated, how much would the income from operations of each division and total company income from operations increase? The Semiconductors Division's income from operations would increase by$fill in the blank 75932002afef041_1 The Navigational Systems Division's income from operations would increase by$fill in the blank 75932002afef041_2 Exoplex Industries Inc.'s total income from operations would increase by$fill in the blank 75932002afef041_3 5a. What is the range of possible negotiated transfer prices that would be acceptable for Exoplex Industries Inc.? Any transfer price than the Semiconductors Division’s variable expenses per unit but than the market price would be acceptable. 5b. Assuming that the managers of the two divisions cannot agree on a transfer price, what price would you suggest as the transfer price?$fill in the blank 75932002afef041_6
Requirement in 2nd image
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ats Assume a company has three products-A, B, and C-that emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,200,000. The selling prices and outputs for each product at the split-off point are as follows: Product A B С Selling Price $33 per pound $29 per pound $24 per pound Product A B C Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Output 14,000 pounds 18,000 pounds 19,000 pounds Additional Processing Costs $65,000 $72,000 $88,000 Selling Price $37 per pound $34 per pound $30 per pound The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage (disadvantage) of continuing to operate the entire joint manufacturing process?