DescriptionA Simple Explanation for Case 2 If the production department makes a product with a variable cost of 50 SAR per unit and could sell it

Description

A Simple Explanation for Case 2

If the production department makes a product with a variable cost of 50 SAR per unit and could sell it externally for 80 SAR, the opportunity cost is 30 SAR. So:

Minimum Transfer Price: 50 SAR (variable cost) + 30 SAR (opportunity cost) = 80 SAR.

Maximum Transfer Price: 80 SAR (market price).

Thus, the transfer price should be between 80 SAR minimum and 80 SAR maximum

Case study (2) Summer Year 2023-2024
Case study (2)
course
Financial Decision Making (MB 500)
Class instructor
Dr. Hossam Sharawi
Section
Accounting & Finance
06/08/2024
JIC
Exam`s Date
College
Student Name
ID
Number of Exam Pages
2 Pages
Instructor’s Signature
Dr. Hossam Sharawi
Reviewer’s Signature
Instructions:
1- Make sure that your exam sheet is 2 papers including the cover page.
2- Write your name and student ID number in the fields above.
3- Read the exam carefully and answer all the questions.
4- A calculator is allowed.
5- You are not permitted to share calculators or any other materials during the exam .
1st: Knowledge 40% (…Marks)
Question Number
Mark
CLOs
1
4
1.1-1.2
PLOs
Q1
10
Total/K
Question Number
Total/s
Total
4
2nd: Skills 60 % (…Marks)
Mark
CLOs
6
2.1-2.2
10
PLOs
6
3rd : values …% (…Marks)
Total/v
Total
Mark
1
The First question: Answer the following case study
10 Marks
ABC Company is a computer products manufacturer with a CPU division that produces both
standard and special CPUs. The following data is given:
– Production capacity: 100,000 units
– Variable cost per unit: 16 riyals
– Fixed cost per unit: 9 riyals
– Selling price in the market: 30 riyals
The manager of the Hard desk division wants to buy 10,000 standard CPUs from the CPU division
instead of the external supplier who charges 29 riyals per CPU. However, there are some
implications:
– If the CPU division transfers 10,000 units to the Hard desk division, it will save 3 riyals per
unit in variable costs.
– If the Hard desks division also needs 20,000 special CPUs, which the CPU division can
produce at a variable cost of 20 riyals per unit. However, this will reduce the CPU division’s
capacity to produce only 70,000 standard CPUs. The Hard desks division can buy the special
CPU from an external supplier for 41 riyals per unit.
Discuss this case and give your recommendations:
1. What is the minimum transfer price that the CPU division should accept for the standard CPU?
2. What is the maximum transfer price that the Hard desk division should pay for the CPU?
3. What is the acceptable range of transfer prices that both divisions can agree on for the standard
CPU?
2

Purchase answer to see full
attachment

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Description

Description Form No 4- Internship Report Cover Page Student`s Name: Student`s ID: Training Organization: Trainee Department: Field Instructor Name: Field Instructor Signature: Course Title: MGT 430 CRN Internship Start Date: Internship End Date: Academic Year/Semester: For Instructor’s Use only Instructor’s Name: Total Training Hours /280 Students’ Grade:Marks Obtained/30 Level of

Description

Description SEE College of Health Sciences Department of Public Health ASSIGNMENT COVER SHEET Course name: Applied Biostatistics Course number: PHC321 CRN: 20627 Paper Assignment-1 Answer the following questions in a Word document using the provided datasheet (you may use SPSS or MS Excel for your analysis). The datasheet contains national

Description

Description Can you please write full report about this topic. This report should focus on this subjects: 1- Introduction Fast food is a quickly prepared and served food that is often high in calories, fat, and salt. However, these foods can lead to serious health problems, including hypertension. 2- Hypertension

Description

Description Define the term of global warming and present arguments for and against the proposition that global warming has occurred during the past century and what environmental outcomes have been attributed to global warming? Instructions for Completing the Discussion Questions: Please post your original response by Tuesday 25/2/2025 at 11:59

Description

Description The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover

Description

Description I want presentation p.p Saudi Electronic University College of Administrative and Financial Sciences E-commerce Department Student Name: 1.Shekah Saad Alqahtani 2.Dana Sattam Alharbi 3.Abrar Almutairi 4.Randa Kayid Alotaibi 5.Ghala Bashmil Student ID: -230027645 -230044487 -230048240 -230032061 -230049707 Course Title: E-commerce Course Code: ECOM101 Academic Year/ Semester: 2024/2025 _Second semester

Description

Description first, plagiarism should be avoided sconed , the sources used must be accredited. You must follow all the instructions in the file AVOID USE artificial intelligence the most important dont use chatgpt and sources is very important answer dont be very short

Description

Description I don’t want a solution copied from another student’s paper. ‫المملكة العربية السعودية‬ ‫وزارة التعليم‬ ‫الجامعة السعودية اإللكترونية‬ Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University College of Administrative and Financial Sciences Assignment 3 Decision Making and Problem Solving (MGT 312) Due Date: End of week 12,

Description

Description CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on

Description

Description Accounting Coop training report3000words include points below : 1. Process supplier payments to ensure accurate and timely payment 2. Review incoming invoices for proper coding and approvals 3. Record, review, and post journal entries to the general ledger 4.Manging and ensuring compliance with all zakat & VAT polices &

Description

Description Release date: 06-April-2025__________________Due date: 03-May-2025 Instructions for submission: Assignment must be submitted with properly filled cover sheet (Name, ID, CRN, Submission date) in word document, Pdf is not accepted. Length of the write-up should be 1 to 2 pages (500 -750 words). Text size 12-Times New Roman with double

Description

Description Release date: 06-April-2025__________________Due date: 03-May-2025 Instructions for submission: Assignment must be submitted with properly filled cover sheet (Name, ID, CRN, Submission date) in word document, Pdf is not accepted. Length of the write-up should be 1 to 2 pages (500 -750 words). Text size 12-Times New Roman with double

Description

Description Release date: 06-April-2025__________________Due date: 03-May-2025 Instructions for submission: Assignment must be submitted with properly filled cover sheet (Name, ID, CRN, Submission date) in word document, Pdf is not accepted. Length of the write-up should be 1 to 2 pages (500 -750 words). Text size 12-Times New Roman with double

Description

Description Guidelines: Cover sheet should be attached with assignment Use the excel sheet for your calculations to answer the assignment questions Complete student’s information on the first page of the document. Font should be 12 Times New Roman Line spacing should be 1.5 The text color should be “Black” Maximum

Description

Description Guidelines: Cover sheet should be attached with assignment Use the excel sheet for your calculations to answer the assignment questions Complete student’s information on the first page of the document. Font should be 12 Times New Roman Line spacing should be 1.5 The text color should be “Black” Maximum

Description

Description Guidelines: Cover sheet should be attached with assignment Use the excel sheet for your calculations to answer the assignment questions Complete student’s information on the first page of the document. Font should be 12 Times New Roman Line spacing should be 1.5 The text color should be “Black” Maximum

Description

Description Submission Guidelines: Write 1-2-page(s) essay not less than 200 words and maximum of 300 words excluding references with a font of Times New Roman and size of 12. The line spacing should be 1.5. Heading should be Bold and text color should be Black Avoid Plagiarism Assignments must be

Description

Description See College of Health Sciences Department of Health Informatics HCI-316 – Group Presentation In this group project, teams of 3–5 students will collaborate to explore and present exciting developments in digital health innovation within the Middle East, with a particular focus on Saudi Arabia (KSA). The goal is to