Assume the transfer price for a pair of soles is 180% of full costs of the Sole Division and 100,000 of soles are produced and transferred to the Assembly Division. The Sole Division's operating income is:
A) $1,600,000.
B) $1,800,000.
C) $2,560,000.
D) $3,600,000.
A
Explanation: A) Revenue [($20 × 1.80 ) × 100,000 )] - Costs ($20 × 100,000 ) = $1,600,000 Operating income
Business
You might also like to view...
On the proprietary fund Statement of Revenues, Expenses, and Changes in Fund Net Position, ______.
Fill in the blank(s) with the appropriate word(s).
Business
Sense of competence is
a. the opportunity to delegate authority. b. the opportunity to pursue worthwhile tasks. c. the opportunity to compete with others. d. the opportunity to select what one will do and perform the way one thinks best. e. the feeling of accomplishment from doing a good job.
Business