The transfer price per roll of recycled paper and would the production manager will choose to purchase 2,000 pounds next month from EC. Given information: The rate of the recycling division is $0.075. Numbers of the recyclable paper used is 100 pounds. Variable cost is $6.35. Fixed cost is $2.15. The recycling paper is transferred to the manufacturing division at the cost of 110%.

Question

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Answer 1

Question

Chapter 22, Problem 22.34P

1.

To determine

The transfer price per roll of recycled paper and would the production manager will choose to purchase 2,000 pounds next month from EC.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

The recycling paper is transferred to the manufacturing division at the cost of 110%.

2.

To determine

Whether the external purchase is in the best interest of CM and the cause for this goal incongruence.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

3.

To determine

The reason of the sudden price cut, comment on the validity of the $17 per roll market price and the ethics of the manufacturing manager and whether the change in transfer price to $17 matter to SC.

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Answer 2

Question

Chapter 22, Problem 22.34P

1.

To determine

The transfer price per roll of recycled paper and would the production manager will choose to purchase 2,000 pounds next month from EC.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

The recycling paper is transferred to the manufacturing division at the cost of 110%.

2.

To determine

Whether the external purchase is in the best interest of CM and the cause for this goal incongruence.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

3.

To determine

The reason of the sudden price cut, comment on the validity of the $17 per roll market price and the ethics of the manufacturing manager and whether the change in transfer price to $17 matter to SC.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 22, Problem 22.34P

1.

To determine

The transfer price per roll of recycled paper and would the production manager will choose to purchase 2,000 pounds next month from EC.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

The recycling paper is transferred to the manufacturing division at the cost of 110%.

2.

To determine

Whether the external purchase is in the best interest of CM and the cause for this goal incongruence.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

3.

To determine

The reason of the sudden price cut, comment on the validity of the $17 per roll market price and the ethics of the manufacturing manager and whether the change in transfer price to $17 matter to SC.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 22, Problem 22.34P

1.

To determine

The transfer price per roll of recycled paper and would the production manager will choose to purchase 2,000 pounds next month from EC.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

The recycling paper is transferred to the manufacturing division at the cost of 110%.

2.

To determine

Whether the external purchase is in the best interest of CM and the cause for this goal incongruence.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

3.

To determine

The reason of the sudden price cut, comment on the validity of the $17 per roll market price and the ethics of the manufacturing manager and whether the change in transfer price to $17 matter to SC.

Expert Solution & Answer

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Answer 5

Chapter 22, Problem 22.34P

1.

To determine

The transfer price per roll of recycled paper and would the production manager will choose to purchase 2,000 pounds next month from EC.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

The recycling paper is transferred to the manufacturing division at the cost of 110%.

2.

To determine

Whether the external purchase is in the best interest of CM and the cause for this goal incongruence.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

3.

To determine

The reason of the sudden price cut, comment on the validity of the $17 per roll market price and the ethics of the manufacturing manager and whether the change in transfer price to $17 matter to SC.

Answer 6

Chapter 22, Problem 22.34P

1.

To determine

The transfer price per roll of recycled paper and would the production manager will choose to purchase 2,000 pounds next month from EC.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

The recycling paper is transferred to the manufacturing division at the cost of 110%.

Answer 7

Chapter 22, Problem 22.34P

1.

To determine

The transfer price per roll of recycled paper and would the production manager will choose to purchase 2,000 pounds next month from EC.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

The recycling paper is transferred to the manufacturing division at the cost of 110%.

Answer 8

2.

To determine

Whether the external purchase is in the best interest of CM and the cause for this goal incongruence.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

Answer 9

2.

To determine

Whether the external purchase is in the best interest of CM and the cause for this goal incongruence.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.

Answer 10

3.

To determine

The reason of the sudden price cut, comment on the validity of the $17 per roll market price and the ethics of the manufacturing manager and whether the change in transfer price to $17 matter to SC.

Answer 11

3.

To determine

The reason of the sudden price cut, comment on the validity of the $17 per roll market price and the ethics of the manufacturing manager and whether the change in transfer price to $17 matter to SC.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 22 - Prob. 22.1Q Ch. 22 - Describe three criteria you would use to evaluate...Ch. 22 - What is the relationship among motivation, goal...Ch. 22 - Name three benefits and two costs of...Ch. 22 - Organizations typically adopt a consistent...Ch. 22 - Transfer pricing is confined to profit centers. Do...Ch. 22 - What are the three methods for determining...Ch. 22 - What properties should transfer-pricing systems...Ch. 22 - All transfer-pricing methods give the same...Ch. 22 - Prob. 22.10Q

Whether the external purchase is in the best interest of CM and the cause for this goal incongruence. Given information: The rate of the recycling division is $0.075. Numbers of the recyclable paper used is 100 pounds. Variable cost is $6.35. Fixed cost is $2.15.

The reason of the sudden price cut, comment on the validity of the $17 per roll market price and the ethics of the manufacturing manager and whether the change in transfer price to $17 matter to SC.

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Chapter 22 Solutions

Whether the external purchase is in the best interest of CM and the cause for this goal incongruence.

Given information:

The rate of the recycling division is $0.075.

Numbers of the recyclable paper used is 100 pounds.

Variable cost is $6.35.

Fixed cost is $2.15.