Fill in the order form to get the price

Subject

Deadline

Timezone:

Title *

Task *

{"ops":[{"insert":"\nQuestion 2\n\nThere are two key divisions in a major international organisation. Division Y makes the small component and Division Z makes the finished product, which incorporates one small component. Division Z normally purchases the small component from Division Y.\u00a0\n\n\n\nDetails of the selling prices and costs for each product are:\n\n\n\nSmall component\n\n\u00a3 Finished product\n\n\u00a3\n\nSelling Price 66 106\n\nDirect materials 19 10\n\nTransfer price from Y - 66\n\nDirect labour @ \u00a32 per hour 10 6\n\nVariable overhead 5 4\n\nDivisional Fixed Overheads \u00a3950,000 \u00a3490,000\n\nOutside sales (units) 100,000 25,000\n\nDivisional investment \u00a313,600,000 \u00a32,550,000\n\n\n\nDivision Z currently has a return on investment below the head office target of 15%. The transfer price of the small component is set at a competitive market price of \u00a366.\n\nAfter receiving an appeal from the Manager of Division Z to intervene, the Chief Executive asks you to consider a proposal for a 'two-part tariff' transfer price system.\n\n\n\n\n\nYou are required to:\n\n\n\na) Advise the Chief Executive on the appropriateness of the present transfer price system, with supporting calculations of its effects on the respective profitability and returns of each division.\n\n(8 marks)\n\n\n\nb) To recommend a basis for the two-part tariff transfer price system, with supporting calculations and comment on its impact on the two divisions.\n\n\n\n(9 marks)\n\n\n\nc) Comment on why you think the Chief Executive may be reluctant to intervene.\n\n"}]}

I need basic explanations

Special Requirements

Upload files (if required)

Drop files here to upload

Add files...

Account info

Already have an account?

Name *

E-mail *

Password *

The password must be at least 6 characters.

I agree with terms & conditions