Division A of Arctic Co., makes a part that can either be sold to customers or transferred internally to Division B. The annual data gathered are as follows: Annual production capacity 40,000 units Selling price P25 Variable cost per unit 12 Fixed cost per unit 5 Division B of Arctic Co. requires 10,000 units per year and is currently paying an outside supplier $22 per  unit. 1. If outside customers demand only 20,000 units per year, what is the lowest acceptable transfer  price?  2. If outside customers demand 40,000 units per year, what is the lowest acceptable transfer  price?

Q: The chief financial officer (CFO) of New Age Fashion Ltd. has just received a request from a project...

A: Marginal cost-benefit analysis refers to examination of related costs and potential benefits of any ...

Q: On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of...

A: Allowance for doubtful accounts is considered as a contra asset account. This account is used to dec...

Q: December 13 Accepted a $16, 000, 45-day, 6% note in granting Miranda Lee a time extension on her pas...

A: Answer)   Total Through Maturity Interest Recognized December 31 Principal  $         ...

Q: 1. Company ABC reports a loss of $80,000 in 2007. In the past when the firm incurred a loss they fir...

A: Year Income/ (loss) carry forward loss 2000 50000 - 2001 30000 - 2002 (40000) (40000) 2003 (...

Q: Requirements:  Compute the total liabilities after formation

A:   1 Provide 2% allowance for doubtful accounts                     P  Q     Accounts Receiv...

Q: On the first day of the current fiscal year, $1,500,000 of 8%, 10-year bonds, with interest payable ...

A: Journal entries are the initial reporting of the transactions in the books of an entity.

Q: Micro

A: Micro Advantage’s weighted-average cost of capital (WACC) is 14.96%.  Please see the attached soluti...

Q: nagative externality can be internalized by a. taxation b. reqard c. subsidy d. none of the above

A: Correct option with proper explanation are as follows.

Q: Describe the components of the profit equation.

A: Profit refers to the earnings of an entity over a specific period of time. 

Q: Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year,...

A: The correct answer calculation is given in the following steps.

Q: manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to ot...

A: Differential analysis is performed fir the situation when two alternatives are available for the com...

Q: Business combination withc

A: Acquisition goodwill is the difference between the consideration paid and the fair value of the net ...

Q: Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross pr...

A: Solution Concept Under FIFO method the goods purchased first is sold first cost of goods sold       ...

Q: What is the amount paid for VAT in Feb? (VAT payable)

A: VAT or Value Added Tax refers to the tax levied on the value addition in goods or service.  When Out...

Q: P21.14 (LO 2, 3, 4) (Lessor Operating Lease) Lewis Machinery Works entered into a lease agreement on...

A: The correct answer calculation for the above mentioned question is given in the following steps. 

Q: On October 1, Year 3, Eure Retailers signed a 4-month, 16% note payable to finance the purchase of h...

A: The correct answer for the above mentioned question is given in the following steps for your referen...

Q: e is said to be a normal good if indifference e indifference curves associated with chang on-labor i...

A: Leisure refers to the time when an employee is not working can spend the desired time in their own w...

Q: Marginal corporate tax rates Using the corporate tax rate schedule given here 1. perform the followi...

A: Marginal tax rates are selected on the basis of the slab given by the IRS code.

Q: Journalize the following business transactions in general journal form. Identify each transaction by...

A: Journal entries are the recording of entries which helps in posting and preparing trial balance. It ...

Q: he chief financial officer (CFO) of New Age Fashion Ltd. has just received a request from a project ...

A: Here the situation to taken the best possible decision to making to approve the expenditure which ar...

Q: Answer should be presented as: DECREASE 123456 or INCREASE 123456 During 2021, the first year of ope...

A:   Market value of security 2 as on Dec. 31, 2022 1100000   Less: value at which security 2sold ...

Q: Last year Minden Company introduced a new product and sold 15,000 units of it at a price of $70 per ...

A: In this question, we will find a breakeven point in dollar sales which can be calculated by dividing...

Q: A company has estimated its economic order quantity for Part A at 3,000 units for the coming year. I...

A: Economic order quantity = 2 * Annual usage * cost per order / Carrying cost per unit

Q: Riverbed Corp. uses the direct method to prepare its statement of cash flows. Riverbed trial balance...

A: The cash flow statement, also known as the statement of cash flows, helps creditors determine how mu...

Q: Describe the components of the profit equation.

A: profit is such amount that business and after including all the expenses other cost that has been in...

Q: Describe the difference between a sole proprietorship, a partnership, and a corporation?

A: Ownership- Ownership is the condition or fact of legal control and control over possessions, which m...

Q: Mink Caress Direct Materials Budget - Year 2 Quarter Year First Second Third Fourth Units of raw mat...

A: Budget means the expected value of future. Budget is not affected by the actual value as it is prepa...

Q: 8. C. Walton sold inventory on 1 August to M. Jones for $990 (including $90 GST). On 20 August, Jone...

A: The journal entries are prepared to keep the record of day to day transactions of the business. 

Q: Your company declared $13,800 cash dividends on stock. There were $6,400 in dividends payable at the...

A: Formula: Dividends paid = Beginning of the year dividends + Dividends declared - Ending dividends ba...

Q: Bravo Company has the following information at month-end: Sales - P100,000 Sales Returns and Allowan...

A: Net sales = Gross sales -Sales returns and allowances - Sales Discounts

Q: The MBA802 Company failed to record (accrue) $9,000,000 of cost related to vendor invoices and warra...

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...

Q: The following trial balance was extracted from the books of Movies To The Max Ltd at December 31, th...

A: A balance sheet is a representation of an individual's personal or corporation's financial balances ...

Q: The problem to be resolved: The following trial balance was extracted from the books of Movies To...

A: 1. Adjusting Entries - Adjusting Entries are the entries which are made at the year end. Due to adju...

Q: You are buying a machine with a down payment of $200,000 and annual payments of $40,000 per year for...

A: The present value of all cost is the net cost of all cost including the down payment and all cost an...

Q: Problem . Valuation of equity X Company paid dividends of 2.12 in 2022. The dividends are expec...

A: Current dividend (D0) = 2.12 Growth rate (g) = 5% Cost of equity (r) = 9.40%

Q: Marigold Corporation reported net income of $49,400 in 2020. Depreciation expense was $16,700. The f...

A: Cash from operating activities means the amount of cash flows from the routine business activities.

Q: Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur i...

A: Budget means the expected value of future. Budget is not affected by the actual value as it is prepa...

Q: EG Corporation redeemed 200 shares of stock from one of its shareholders in exchange for $210,000. T...

A: Solution:- Given, EG Corporation redeemed = 200 shares of stock in exchange of $210,000. The redempt...

Q: verage corporate tax rates Ordinary income in 2017 was taxed subject to the rates shown in the accom...

A: Total tax liability = Base tax + Marginal tax Marginal tax = Marginal rate * amount over bracket low...

Q: Al Mdina Traders based in Shrjah mainland area imported 100 mobile phones from China. The transactio...

A: While calculating assessable value for calculating customs duty on a import whose terms are CIF, the...

Q: produces and sells lumber that can be sold to outside customers or within the company to the Constru...

A: Internal transfer means where one independent department is transferring the goods to another indepe...

Q: The company has debit balance of input tax at the beginning of th 6. what is the VAT payable for the...

A:

Q: ritz Inc. had no treasury stock at the beginning of the year. During February, Fritz purchased 13,20...

A:  To generate a journal entry, you input transaction data into your company's records. Your journal e...

Q: 9.6A F Brown drew up the following trial balance as at 30 September 20X8. You are to draft the tradi...

A: An income statement is a financial statement that summarizes a company's earnings and costs. It also...

Q: Corporate taxes Southern Textile Ltd. is a manufacturer of sportswear that supplies to a number of E...

A: Let's understand some basics  Taxes are mandatory contributions levied on individuals or corporation...

Q: How are deferred taxes calculated? What determines if the company has a deferred asset or a deferred...

A: Deferred tax is a fictitious asset or liability that reflects company income taxation on a premise t...

Q: Some of the responses by governments to slow down the pandemic have had a negative impact on the tax...

A: Tax revenue is the revenue to the government, the government of any country gets the revenue by way ...

Q: A bond pays a coupon of $39 twice a year. What is the coupon rate? Answer as a percent.

A: Coupon rate = total coupon amount paid in a year/face value of the bond

Q: se the appropriate information from the data provided below to calculate operating income for the ye...

A: Operating income can be calculated by deducting the cost of goods sold and other operating expenses....

Q: Almond acquires 80% of the share capital of Cashew on 1 August 20X6 and is preparing its group finan...

A: For the purpose of preparation of consolidated statement of financial position, the assets and liabi...