Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. decision on transfer pricing materials used by th

Decision on transfer pricing Materials used by the Instrument Division of Ziegler Inc....

60.1K

Verified Solution

Question

Accounting

Decision on transfer pricing
Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $255 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $212 per unit.
a. If a transfer price of $232 per unit is established and 38,500 units of materials are transferred, with no reduction in the Components Division's current sales, how much would Ziegler Inc.'s total operating income increase?
b. How much would the Instrument Division's operating income increase?
X
c. How much would the Components Division's operating income increase?
Feedback
TCheck My Work variable cost, or the market price and transfer cost. Then, multiply the difference by the units transferred.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

What is the L.C.M and H.C.F of the fractions 6/5,3/5and15/11?

Operations Management
1.2K views

Social media monitoring, listening, analytics, and intelligence are often used synonymously, but in reality each term actually...

Biology
1.2K views

A vascular bundle is on the outer surface of a root. contains xylem and phloem...

Physics
1.2K views

10 In an investigation to test Thomas Young s double slit experiment a helium neon...

Geometry
1.2K views

A 8 12 8 Determine the following cardinalities n A n C 19 n An...

Basic Math
1.2K views

3 tan 1 0

Algebra
1.2K views

3 The weight of cell phones is normally distributed The mean weight of a sample...

Algebra
1.2K views

4 Use a calculator to graph and solve If exact roots cannot be found approximate...

Algebra
1.2K views

5 Find the exact values of the three trigonometric functions sine cosine tangent of the...

Accounting
1.2K views

Shown as follows are responsibility income statements for Butterfield, Inc., for the month...

Accounting
1.2K views

If the master budget prepared at a volume level of 20,000 unite includes factory rent...

Accounting
1.2K views

Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing...