How would overall corporate profits be affected if it sells 4,000 units to the Computer Division at P45? NUBD Inc. manufactures and sells various high-tech office automation products.Two divisions of NUBD Inc. are the X Division and the Y Division. The X Divisionmanufactures one product, a "ultra chip," that can be used by both the Y Division andother external customers. The following information is available on this month'soperations in the X Division:Selling price per chipVariable costs per chipFixed production costsFixed SG&A costsP50P30P60,000P90,00010,000 chips10,000 chips0 chipsMonthly capacityExternal salesInternal salesPresently the Y Division purchases no chips from the X Division, but instead paysP45 to an external supplier for the 4,000 chips it needs each month.

Transfer pricing methods are those methods which are used for setting prices for transfer of product…

Answered: How would overall corporate profits be…

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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Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,000 Variable Cost 750,000 1,250,000 Contribution Margin 500,000 750,000 Fixed Cost 400,000 450,000 Income from Operation $100,000 $300,000 Compute the operating leverage for Beck Inc. and Bryant Inc. How much would income from operations increase for each company if the sales of each increased by 20%? Why is there a difference in the increase in income from operations for the two companies? Explain.
Please Solve E
A computer company has $3920000 in research and development costs. Before accounting for these costs, the net income of the company is $2540000. What is the amount of net income or loss before taxes after these research and development costs are accounted for? $2540000 net income. O $0. $1380000 loss. Cannot be determined from the information provided.
Please Solve D
If accounting profit is $400,000 greater than economic profit, what do implicit costs equal?
Rose Trading had RM210,000 of net profit in year 2021 when the selling price per unit was RM150, the variable costs per unit were RM90, and the fixed costs were RM570,000. Management expects per unit data and total fixed costs to remain the same in year 2022. The manager of Rose Trading is under pressure from investors to increase net profit by RM52,000 in year 2022.Required:(iii) Assume that Rose Trading sells the same number of units in year 2022 as it did in year 2021. What would the selling price have to be to reach the shareholders’ desired profit level?(iv) Assuming actual sales in year 2022 are 16,000 units with the new selling price as computed in (c), compute the margin of safety in (i) units and (ii) as a ratio. Briefly explain your findings. (Tips: Interpret about margin of safety)
p4-8
Allen Inc. has sales of P 400,000 with variable costs of P 300,000, fixed costs of P 120,000, and an operating loss of P 20,000. By how much, at minimum, would the entity need to increase sales in order to avoid incurring a loss?
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Q.33. pretax income for their company was $1956 M last year. sales rev. and COGS for the company was $5586 M and & $2215 M. How kuch would sales/marketing need to increase sales to gave the same effect as reducing cogs by 4%
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
What is AAA Corp.’s projected degree of operating leverage based on the projected sales?

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