Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. riyadh corporation has two divisions: a and b....

Riyadh Corporation has two divisions: A and B....

70.2K

Verified Solution

Question

Accounting

image
image
Riyadh Corporation has two divisions: A and B. Division A makes SIGMA, which is then transferred to Division B. SIGMA is further processed by Division B and is sold to customers at a price of $175 per unit. Division A is currently required by Riyadh to transfer its total yearly output of 250,000 units of SIGMA to Division B at 120% of full manufacturing costs. Unlimited quantities of SIGMA can be purchased and sold on the outside market at $100 per unit. The following table gives the manufacturing cost per unit in division A and B for 2010: The management in addition supplied the following information: Manufacturing overhead costs in Division A are 25% fixed and 75% variable. Manufacturing overhead costs in Division B are 60% fixed and 40% variable. Required 1. Calculate the operating incomes for the two divisions for the 250,000 units of SIGMA transferre the following transfer pricing methods: (i) market prices. (5 po (ii) 120% of full manufacturing cost. (iii) Internal Transfer at Hybrid Price

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

Algebra
1.2K views

sin 8 and cos 6 both positive Match in groups of three When it s...

Basic Math
1.2K views

Consider F and C below. F(x, y, z) = yz i + xz j + (xy...

Biology
1.2K views

Explain why a life cycle that includes meiosis must also include fertilization. What is the advantage...

Psychology
1.2K views

: Give an example of how you would use Monroe’s motivated sequence (A Minimum of 50 words) discuss...

Statistics
1.2K views

Scatterplot of daily cycling distances and type of climb: Every summer, the touring company America by...

Finance
1.2K views

Grunewald Industries sells on terms of 1/10, net 30. Gross sales last year were $4,342,000 and...

Physics
1.2K views

31 The amplitude of the magnetic field of a harmonic electromagnetic wave in vacuum is...

Statistics
1.2K views

templot describes a certain data set The leaf unit 1 2 1138 3 235 4...

Calculus
1.2K views

The relationship between the Fahrenheit F and Celsius C scales is given by F g...

Accounting
1.2K views

Question 1 of 4 0.753 Current Attempt in Progress Indigo Chance...

Accounting
1.2K views

Exercise 10-4A (Algo) Determining the present value of an annuity LO 10-1 The...

Finance
1.2K views

QUESTION 22 Calculate the Rate of Return (decision of IRR or MIRR up to the...