- I Need A Detailed Problem Solving Procees 1 (227.15 KiB) Viewed 17 times
I need a detailed problem solving procees.
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answerhappygod
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I need a detailed problem solving procees.
I need a detailed problem solving procees.
23-26 General guideline, transfer pricing. The Aqua Company manufactures and sells television sets. Its assembly division (AD) buys television screens from the screen division (SD) and assembles the TV sets. The SD, which is operating at capacity, incurs an incremental manufacturing cost of $60 per screen. The SD can sell all its output to the outside market at a price of $110 per screen, after incurring a variable market- ing and distribution cost of $10 per screen. If the AD purchases screens from outside suppliers at a price of $110 per screen, it will incur a variable purchasing cost of $8 per screen. Aqua's division managers can act autonomously to maximize their own division's operating income.bulbniton 1. What is the minimum transfer price at which the SD manager would be willing to sell screens to the AD? 2. What is the maximum transfer price at which the AD manager would be willing to purchase screens from the SD? nislox3 900611 oli ahogni sidstegn Tachism and bri dve to nou 3. Now suppose that the SD can sell only 80% of its output capacity of 10,000 screens per month on the pricopen market. Capacity cannot be reduced in the short run. The AD can assemble and sell more than 10,000 TV sets per month. ateoo nobudhizib bus a. What is the minimum transfer price at which the SD manager would be willing to sell screens to besim the AD? serind oders, waru0420S. b. From the point of view of Aqua's management, how much of the SD output should be transferred to the AD? 190C. If Aqua mandates the SD and AD managers to "split the difference" on the minimum and maxi- mum transfer prices they would be willing to negotiate over, what would be the resulting transfer price? Does this price achieve the outcome desired in requirement 3b? opiva ant ni stueet eine orli jabong
23-26 General guideline, transfer pricing. The Aqua Company manufactures and sells television sets. Its assembly division (AD) buys television screens from the screen division (SD) and assembles the TV sets. The SD, which is operating at capacity, incurs an incremental manufacturing cost of $60 per screen. The SD can sell all its output to the outside market at a price of $110 per screen, after incurring a variable market- ing and distribution cost of $10 per screen. If the AD purchases screens from outside suppliers at a price of $110 per screen, it will incur a variable purchasing cost of $8 per screen. Aqua's division managers can act autonomously to maximize their own division's operating income.bulbniton 1. What is the minimum transfer price at which the SD manager would be willing to sell screens to the AD? 2. What is the maximum transfer price at which the AD manager would be willing to purchase screens from the SD? nislox3 900611 oli ahogni sidstegn Tachism and bri dve to nou 3. Now suppose that the SD can sell only 80% of its output capacity of 10,000 screens per month on the pricopen market. Capacity cannot be reduced in the short run. The AD can assemble and sell more than 10,000 TV sets per month. ateoo nobudhizib bus a. What is the minimum transfer price at which the SD manager would be willing to sell screens to besim the AD? serind oders, waru0420S. b. From the point of view of Aqua's management, how much of the SD output should be transferred to the AD? 190C. If Aqua mandates the SD and AD managers to "split the difference" on the minimum and maxi- mum transfer prices they would be willing to negotiate over, what would be the resulting transfer price? Does this price achieve the outcome desired in requirement 3b? opiva ant ni stueet eine orli jabong