Please provide the Transfer Pricing Schedule/Policy under the Optimum Transfer Pricing Method for the attached problem. Ute Semi-Conductor CompanyProblem #1Ute Semi-conductorsuperchipssuperchipsExternalmarketSuperchipVariable cost$230Selling price$400Market Demand20,000Hours/unit to produce4Max 25KUte Mini-computerProduction capacity of semi-conductor = 100,000 hoursUte has a 100% owned subsidiary that wants to purchase super chips.What should Ute establish as the Transfer Price Poicy under theOptimum Transfer Pricing method?2

To determine the optimal transfer price using the Optimum Transfer Pricing Method, we consider the…

Answered: Ute Semi-Conductor Company Problem #1…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.18E

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Answer the last no.7 Please provide a complete solution
A retail company is considering the two mutually exclusive projects given in the following table. Selling toys Year Selling kitchenware -$350,000 -$300,000 1 220,000 210,000 2 265,000 210,000 IRR 24% 26% Find the range of MARR for which the company would invest in selling kitchenware over selling toys with do-nothing alternative. MAAR S 15% O 15% SMAARS24% MAARS26% O 15% SMAARS26% O None of the above
Project A Time 0 - 10,000 Time 1 5,000 Time 2 Time 3 4,000 3,000 Project B - 10,000 4,000 3,000 10,000 If WiseGuy Inc. is choosing one of the above mutually exclusive projects (Project A or Project B), given a discount rate of 8%, which should the company choose? OA. Project A OB. Project B OC. Neither project-both have negative NPV. OD. Both projects-both have positive NPV.
Chapter 6 Uniform Señes Analysisy Acertain 'ndustrial firm desires an economic analysis to detemine which of twodifferent machine should be purechased. Each machine s capable of performing the same task given amount of Hime . Assume the minimum attactiverate od returnMARR) is 8%. The following data are to beüsedin your anaylsis Machine X Machine Y First cost $ 5000.00 $8000,00 $150.00 $2000.00 Annual Manitenance Cost $00.00 Salvage value Es timated life inyear which machine would youchoo se? Base your answer on annual.cost Pravide cash flow diagrams and Showyour work? $00.00 12 i50 150 ISo 15. 150 IS. 15a 15. İso 1 2000. 150 ISo A A 5 6 7 la 12
A company sells two products in the ratio 2:1 A B £ £ Selling price 2030 Variable costs 10 15 Given that fixed costs are £500,000, how many products in total will have to be sold to break even? Select one: O a. 50,000 O b. 35,000 O c. 42,500 O d. 45,000 Questio Not yet Marked Flag
Kimmel, Accounting, 7e Help | System Announcements CALCULATOR PRINTER VERSION 1 BACK NEXT Exercise 21-16 Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $11 from an outside vendor. Division A needs 9,300 lamps for the coming year. Division B has the capacity to manufacture 46,700 lamps annually. Sales to outside customers are estimated at 37,400 lamps for the next year. Reading lamps are sold at $11 each. Variable costs are $7 per lamp and include $1 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $72,300. Consider the following independent situations. What should be the minimum transfer price accepted by Division B for the 9,300 lamps and the maximum transfer price paid by Division A? Minimum transfer price accepted by…
ingremng ly obede D T ta V ign Home Tooly Engineering foone Sign In Profit = 1,365,827-980,000 = 385,827 IQD ((This machine should be purchased, as it is considered to be profitable)) H.W 1- Find the internal rate using the method of Internal Rate of Return (IRR) if 1= 15%, for the table shown below. If the initial cost is (220,000 U) 350 380 400 0 0 500 1000 770 450 500 550 470 Cost (U) Revenue 780 650 690 450 880 660 890 770 (U) Year 1 2 3 4 5 6 8 10 0 AM 油

Exercise 11-3 (Algo) Transfer Pricing Basics [LO11-3] Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow: Selling price per unit on the intermediate market $ 120 Variable costs per unit $ 102 Fixed costs per unit (based on capacity) $ 8 Capacity in units 25,000 Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 5,000 speakers per year. It has received a quote of $117 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits. Required: 1. Assume the Audio Division sells only 20,000 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers…
Exercise 11-3 (Algo) Transfer Pricing Basics [LO11-3] Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow: Selling price per unit on the intermediate market $ 120 Variable costs per unit $ 102 Fixed costs per unit (based on capacity) $ 8 Capacity in units 25,000 Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 5,000 speakers per year. It has received a quote of $117 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits. Required: 1. Assume the Audio Division sells only 20,000 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers…
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