PT. XYZ currently has two profit centers, namely division X and division Y. Division X produces 1,000 units of printer components  and sold to division Y or to the external market, at a market price of Rp. 1.000,00 / unit. The cost of the printer component product is a variable cost of Rp. 300,00, fixed costs Rp. 500.000,00. Costs that can be avoidable (avoidable cost) if the products of Division X are sold to Division Y in the presence of selling costs consisting of: discount per runit Rp.60,00. advertising costs Rp. 40,00 / unit and distribution costs and others of Rp. 20,00 / unit. Product division X (printer component) still was carried out by Division Y into (certain printer equipment) at an additional cost of Rp. 1.200,00 / unit. Products from division Y (certain computer equipment) can be sold at a price of Rp. 2.500,00 units. With a marketing cost of Rp. 400,00 / unit. Assume 60% of the printer component (product of division X) is sold to division Y as raw material, and the rest is sold to the market / regular Requested: Calculate the profit for each division of this company, withm market transfer prices! -FYI : Rp is the rupiah which is the Indonesian currency

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 17E: Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside...
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PT. XYZ currently has two profit centers, namely division X and division Y. Division X produces 1,000 units of printer components  and sold to division Y or to the external market, at a market price of Rp. 1.000,00 / unit. The cost of the printer component product is a variable cost of Rp. 300,00, fixed costs Rp. 500.000,00. Costs that can be avoidable (avoidable cost) if the products of Division X are sold to Division Y in the presence of selling costs consisting of: discount per runit Rp.60,00. advertising costs Rp. 40,00 / unit and distribution costs and others of Rp. 20,00 / unit. Product division X (printer component) still was carried out by Division Y into (certain printer equipment) at an additional cost of Rp. 1.200,00 / unit. Products from division Y (certain computer equipment) can be sold at a price of Rp. 2.500,00 units. With a marketing cost of Rp. 400,00 / unit. Assume 60% of the printer component (product of division X) is sold to division Y as raw material, and the rest is sold to the market / regular

Requested:

Calculate the profit for each division of this company, withm market transfer prices!

-FYI : Rp is the rupiah which is the Indonesian currency

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