QUESTION 1 1. a) What is a transfer price? b) How can firms use transfer prices to improve performan

QUESTION 1
1. a) What is a
transfer price?

b)
How can firms use transfer prices to improve performance? Be specific
in your explanations.

QUESTION 2
1.
Consider
the following information, prepared based on a monthly capacity of 100,000
units:

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Category

Cost
per Unit

Variable
manufacturing costs

$27.00

Fixed
manufacturing costs

$9.00

Variable
selling costs

$6.00

Fixed
selling costs

$5.00

2.
3. Capacity cannot be
added in the short run and the firm currently sells the product for $53 per
unit.
4.
5.
The
company is currently producing 85,000 units per month. A potential customer has
contacted the firm and offered to purchase 10,000 units this month only. Since
the potential customer approached the firm, there will be no variable selling
costs incurred. What is the minimum amount that the firm should be willing to
accept for this order?

QUESTION 3
1. A company is considering out-sourcing maintenance to an outside
provider. What factors (financial and non-financial) should the company
consider in making this decision?Be
specific in your responses.QUESTION 4Consider the following information, prepared based on a monthly capacity of 100,000 units:CategoryCost per UnitVariable manufacturing costs$27.00Fixed manufacturing costs$9.00Variable selling costs$6.00Fixed selling costs$5.00Capacity cannot be added in the short run and the firm currently sells the product for $53 per unit.The company is currently producing 100,000 units per month. A potential customer has contacted the firm and offered to purchase 10,000 units this month only. The customer is willing to pay $49 per unit. Since the potential customer approached the firm, there will be no variable selling costs incurred. Should the company accept the special order? Why or why not? Be specific.

QUESTION 5
1. Assume a company produces and sells four different products. Each
product sells for a different amount, has different variable costs, and
requires a different amount of machine hours to produce. Unfortunately, the company
does not have enough machine hours to produce all the units of each product
that it could sell. How should the company decide how many machine hours to use
for each product?Be sure to
explain and justify your recommendation.

QUESTION 6
1. The following is budgeted information for the Leon Corporation:

Product XYZ

Product ABC

Annual production & sales

36,000

24,000

Projected selling price

$50

$80

Variable Direct Production Cost Information

Materials (per unit)

$10

$18

Direct Labor (per unit)

$12

$24

2.
3. Additional information:
·
Manufacturing overhead costs (a
mixed cost) are budgeted to be $450,000 at the production and sales listed
above. The variable component is $5 per unit (same for each product).
·
Selling & administrative
costs (a mixed cost) are budgeted to be $270,000 at the production and sales
listed above. The fixed component is $90,000, and each product uses the same
amount of variable selling and administrative costs per unit.
·
Leon’s marginal tax rate is
30%.

Assuming the budgeted sales mix
remains intact, how manyunits
of each productdoes Leon
need to sell in order to earn a net income of $126,000?

QUESTION 7
1.
a. List and describe the four perspectives of the Balanced Scorecard.
b. One of the most important things to consider in developing a
Balanced Scorecard is to include “leading measures†or “forward-looking
measures†on the Scorecard. What are “leading measures,†and how are they
different from non-leading measures?
c.
What does it mean that
performance measures on a Balanced Scorecard are “integrated?

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15