The XYZ Multinational Corporation has manufacturing facilities in country A and an assembly plant in country B. The company ships manufactured units from its plant in A to its assembly plant in B. 1. In April 2013, the company ships 1,000 units with a production cost of 65 per unit to its plant in country B. Its operating expenses in A are 15,000 for the month. The income tax rate in A is 20 percent and in B 40 percent. The company plans to have a transfer price of 100 per unit. The final product can be sold in B for 140. B's operating expenses are 10,000 during the month. How much will the combined profits be of the two operation in April 2.13? 2. Could the company benefit by changing the transfer price to 120?
Q: A company gets three byproducts A, B and C, in quantities of 6000, 10,000, and 5000 tons,…
A: By product refers to the product that is outcomes when the main product is manufactured.
Q: Boss Company, a manufacturer of headphones, started its production in month of May 2020. Raw…
A: Product cost: The product cost is related to the cost of manufacturing a product. cost per unit =…
Q: Assuming that the company uses the net realizable value method for allocating joint production cost.…
A: The products which are manufactured with a mutual production process are referred to as joint…
Q: Winnebagel Corp. currently sells 28,100 motor homes per year at $73,500 each and 7,100 luxury motor…
A: In order to evaluate a project, the change in sales due to the introduction of a new project should…
Q: Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp.…
A: Equivalent-Uniform-Annual Cost(EUAC) is the cost of operating a machine in current dollars…
Q: List all special costs, semi-variable and direct variable costs of the company in 2021. Produce the…
A: 1. All special costs, semi-variable and direct variable costs Type of Cost Nature Marketing…
Q: Peron Appliances is a Spanish company that is considering moving its manufacturing of dishwashers…
A: Lead Time Demand = lead time * average daily sales Annual holding cost = average inventory level x…
Q: Kamber, Inc., owns a factory located close to, but not inside, a foreign trade zone. The plant…
A: Inventory refers to the stock that is held by the company for resale purposes or the goods that are…
Q: manufacturing company, Prince Concrete Manufacturing, Inc situated in General Santos City, has been…
A: Profit/(loss) : Sales (A) P 225,000,000 Less : variable cost (1,250,000 bags × P110) (B) P…
Q: Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services…
A: Residual income: Residulal income means excess of income earned over the desired income. Desired…
Q: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Winnebagel Corp. currently sells 29,200 motor homes per year at $79,000 each and 8,200 luxury motor…
A: Annual sales figure when evaluating this project = Sales revenue from new portable campers +…
Q: break-even point
A: Selling price per unit P560 Less Variable costs per unit Material (P44) Labor (Cost per…
Q: Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport…
A:
Q: The X Division of NUBD Co. uses 5,000 motor batteries per month in its production of cars. It…
A: Note: As per general rule, in the case of sufficient capacity available, the minimum transfer price…
Q: Peron Appliances is a Spanish company that is considering moving its manufacturing of dishwashers…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Francois French manufactures cheese, which he normally sells at €20/kg, on which sales commission of…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: In 2018, SoundSmart Company started its production, specialising in manufacturing motorcycle…
A:
Q: Finch Company began its operations on March 31 of the current year. Finch has the following…
A: Formula: Insurance expense = Per month amount x Number of months.
Q: Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm…
A: 1.
Q: On 1-March-2010, Alpha Pharmaceuticals Ltd. purchased 10 machines for manufacturing tablets. The…
A: Depreciation is a tax-deductible, non-cash expense which is charged on the fixed tangible asset…
Q: Jojo Ltd manufactures products, Abbisha and Babbisha, from raw material, Zaro. The raw material is…
A: Answer- Working Note : Particulars Working Amount Raw Material for 2020 `=20000*80% 16000…
Q: During the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new…
A:
Q: In 2018, SoundSmart Company started its production, specialising in manufacturing motorcycle…
A: When a product is manufactured, there are different costs associated with it. These costs can be…
Q: Big Red Motors, Inc., employs 15 sales personnel to market its line of luxury automobiles. The…
A: If a business has two alternatives of doing something, then it should select that alternative which…
Q: Betta Jets, a toy wholesaler, is hoping to expand into manufacturing its own products. The business…
A: Workings:- Schedule of Cash Collection:- 70% in the month following sale 30% in 2 month following…
Q: BM Motors, Inc. employs 40 sales personnel to market its line of luxury automobiles. The average car…
A: An indifference point is a point where both proposals provide the same results.it is also known by…
Q: Finch Company began its operations on March 31 of the current year. Finch has the following…
A: The cash payments in April are basically the manufacturing costs and the insurance expenses. Non…
Q: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of…
A: Costs of committed resources are the costs that remain fixed for a given level of activity. Since…
Q: The Slap Shot Company is located in Toronto, Canada and they manufacture hockey sticks. Ice hockey…
A: Variable Costing Amount Variable Manufacturing Overhead 40 Unit Product cost 40…
Q: At the end of June 2019, Ash Design has spent RM 320,000 on 80,000 meters of fabric in the…
A: >Variances can be understood as a 'difference' between what was actually budgeted and what…
Q: Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport…
A: Total cost at hightest activity = 2,000*$350 = $600,000 Total cost at lowest activity = 1,000*$350 =…
Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…
A: Contribution Margin: It is defined as the difference between the sales and the variable cost. In…
Q: Model Company manufactures a single electronic product called Lastik. Lastik sells for P900 per…
A: The sales volume at break even is such sales volume at which the company is at no profit no loss…
Q: At the end of June 2019, Ash Design has spent RM 320,000 on 80,000 meters of fabric in the…
A: Variances can be understood as a 'difference' between what was actually budgeted and what actually…
Q: Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm…
A: Formula: Break even point in units = fixed cost / Unit contribution margin
Q: Pasti Berhad values, advertises and sells residential property on behalf of its customers. The…
A: Cash budget refers to an estimation of cash inflows and outflows in a business over a specified…
Q: Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm…
A: Compute the break-even point in units... Answer)BEP units=Fixed cost/Contribution margin per…
Q: XYZ Corporation operates two plants, each of which has a capacity of 170 units per day. Each day,…
A: The number of units to be shipped to each customer must be determined in accordance with the…
Q: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of…
A: 1. Flexible cost is the cost which keeps varying based on the usage of resources. Committed cost is…
Q: Ganja Motors is a small car dealership. On average, it sells a car for $54,000, which it purchases…
A: The point where the costs are recovered and neither profit nor loss occurs is called the break-even…
Q: What are the annual sales for the new portable camper? (Do not round intermediate calculations and…
A: Annual sales for the new portable camper = Sales units* Selling Price per unit Annual increased…
Q: breakeven point of the Company
A: Definition: Break Even Point: It is the amount necessary for covering up the variable and fixed…
Q: Bell Company, a manufacturer of audio systems, started its production in October 2017. For the…
A: Manufacturing overhead general expenses are not directly related to any product or service but are…
Q: Alpha company imports its goods from abroad in large containers, and it uses workers to unload these…
A: Ans. 648,000 LBP
Could the company benefit by changing the transfer price to 120?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
- Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?The Nature and Wildlife Corporation has manufacturing facilities in country A and an assembly plant in country B. In June 2020, the company will ship 1,000 units with a production cost of $65 per unit to its plant in country B. Its operating expenses in country A are $15,000 for the month. The income tax rate in country A is 20% and in country B it is 40%. The company plans to have a transfer price of $100 per unit. The final product can be sold in country B for $140. Country B’s operating expenses are $10,000 during the month. How much will the combined profits of the two operations be in April 2021?Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places.$
- Homestead Jeans Co. has an annual plant capacity of 67,000 units, and current production is 45,700 units. Monthly fixed costs are $54,400, and variable costs are $31 per unit. The present selling price is $40 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 19,600 units of the product at $34 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co. Required: A. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is…Western Jeans Co. has an annual plant capacity of 2,000,000 units, and current production is 1,920,000 units. Monthly fixed costs are $400,000, and variable costs are $9 per unit. The present selling price is $15 per unit. On July 6 of the current year, the company received an offer from Childs Company for 50,000 units of the product at $13 each. Childs Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Western Jeans Co. Question Content Area a. Prepare a differential analysis dated July 6 on whether to reject (Alternative 1) or accept (Alternative 2) the Childs order. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential AnalysisReject (Alt. 1) or Accept (Alt. 2) OrderJuly 6 Line Item Description Reject Order(Alternative 1) Accept Order(Alternative 2) Differential Effects(Alternative 2) Revenues $Revenues…Down Home Jeans Co. has an annual plant capacity of 65,300 units, and current production is 45,000 units. Monthly fixed costs are $39,300, and variable costs are $25 per unit. The present selling price is $36 per unit. On November 12 of the current year, the company received an offer from Fields Company for 13,200 units of the product at $28 each. Fields Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Down Home Jeans Co. a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Fields order. If an amount is zero, enter zero "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) November 12 RejectOrder(Alternative 1) AcceptOrder(Alternative 2) DifferentialEffecton…
- Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm’s fixed costs are 3,600,000 p per year. The variable cost of each component is 1,000 p, and the components are sold for 3,800 p each. The company sold 5,900 components during the prior year. (p denotes the peso, Argentina’s national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina’s peso was worth 0.104 U.S. dollar. In the following requirements, ignore income taxes.)Required:1. Compute the break-even point in units. (Round your answer to the nearest whole number.)2. What will the new break-even point be if fixed costs increase by 10 percent? (Round your answer to the nearest whole number.)3. What was the company’s net income for the prior year?4. The sales manager believes that a reduction in the sales price to 3,300 p will result in orders for 900 more components each year. What will the break-even…Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm’s fixed costs are 4,000,000 p per year. The variable cost of each component is 2,000 p, and the components are sold for 3,000 p each. The company sold 5,000 components during the prior year. ( p denotes the peso, Argentina’s national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina’s peso was worth .104 U.S. dollar. In the following requirements, ignore income taxes.)Required: Answer requirements (1) through (4) independently.1. Compute the break-even point in units.2. What will the new break-even point be if fixed costs increase by 10 percent?3. What was the company’s net income for the prior year?4. The sales manager believes that a reduction in the sales price to 2,500 p will result in orders for 1,200 more components each year. What will the break-even point be if the price is changed?5. Should the…Damon Industries manufactures 29,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials $ 145,000 Direct labor 169,000 Variable manufacturing overhead 69,000 Fixed manufacturing overhead 89,000 An outside supplier has offered to sell the component for $14. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $10,900. If Damon purchases the component from the supplier instead of manufacturing it, the effect on operating profits would be a: $81,100 increase. $12,100 decrease. $33,900 increase. $55,100 decrease.
- Alert Inc. is a Canadian company that is specialized in the design and manufacturing of intelligent alert systems for seniors. The company sold 20,000 switches at $50 per unit in 2021, spent $20,000 for marketing campaigns, $150,000 for electricity, $250,000 for salaries, $300,000 for alert components, $10,000 for staff training, and $24,000 for rent. The company had a depreciation allowance of $10,000, a bank loan of $100,000 at an annual simple interest rate of 5% and an income tax rate of 25%. At the end of 2021, Alert Inc. possessed $320,000 as cash, $100,000 as inventory, $600,000 as equipment, $100,000 as accounts receivable and $300,000 as accounts payable. List all special costs, semi-variable and direct variable costs of the company in 2021. Produce the income statement of the company in 2021. Complete the balance sheet of the company in 2021 partially provided below. (Figure 1) Complete the cash flow statement of the company in 2021 partially provided below. (Figure 2) How…The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $500 each. The company has a 25% income tax rate. Variable production costs Plastic for casing . . . . . . . . . . . . . . . . . . . . . . $17,000 Wages of assembly workers . . . . . . . . . . . . . 82,000 Drum stands . . . . . . . . . . . . . . . . . . . . . . . . . 26,000 Variable selling costs Sales commissions . . . . . . . . . . . . . . . . . . . . 15,000 Fixed manufacturing costs Taxes on factory . . . . . . . . . . . . . . . . . . . . . . . $ 5,000 Factory maintenance . . . . . . . . . . . . . . . . . . . 10,000 Factory machinery depreciation . . . . . . . . . . 40,000 Fixed selling and administrative costs Lease of equipment for sales staff . . . . . . . . 10,000 Accounting staff salaries . . . . . . . . . . . . . . . . 35,000 Administrative management salaries . . . . . . 125,000 Required 1. Prepare a…The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $500 each. The company has a 25% income tax rate. Variable production costs Plastic for casing $ 17,000 Wages of assembly workers 82,000 Drum stands 26,000 Variable selling costs Sales commissions 15,000 Fixed manufacturing costs Taxes on factory 5,000 Factory maintenance 10,000 Factory machinery depreciation 40,000 Fixed selling and administrative costs Lease of equipment for sales staff 10,000 Accounting staff salaries 35,000 Administrative management salaries 125,000 Required: 1. Prepare a contribution margin income statement for the year.2. Compute its contribution margin per unit and its contribution margin ratio.3. For each dollar of sales, how much is left to cover fixed costs and contribute to…