Business, 13.03.2020 23:50 emilyjohnna11

Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A:

Selling price per circuit board $125
Variable cost per circuit board $90
Number of circuit boards:
Produced during the year 20,000
Sold to outside customers 16,000
Sold to Division B 4,000

Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in an electronic instrument manufactured by that division. (one board per instrument). Division B incurred $100 in additional variable cost per instrument and then sold the instruments for $300 each.

Prepare income statements for Division A, Division B, and the company as a whole:

Division A Division B Total Company
Sales $ $ $
Expenses:
Added by the division
Transfer price paid
Total expenses
Net operating income

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:20, GreenHerbz206

You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. the rate on treasury bills is 6%. your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a t-bill money market fund. what is the expected return and standard deviation of return on your client’s portfolio?

Answers: 1

continue

Business, 22.06.2019 03:10, kingbob101

Jackson is preparing for his hearing before the federal communications commission (fcc) involving a complaint that was filed against him by the fcc regarding the interruption of radio frequency. the order to "cease and desist" using the radio frequency has had a detrimental impact on his business. once the administrative law judge prepares his or her initial order, jackson has no further options. no, jackson can request that the matter be reviewed by an agency board or commission. yes, once the initial order is presented, it's only a matter of time before the order becomes final.

Answers: 3

continue

Business, 22.06.2019 08:30, Maelynne8515

In risk management, what does risk control include? a. risk identification b. risk analysis c. risk prioritization d. risk management planning e. risk elimination need this answer now : (

Answers: 3

continue

Business, 22.06.2019 20:10, cyndy50

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.

Answers: 2

continue

You know the right answer?

Division A manufactures electronic circuit boards. The boards can be sold either to Division B of th...