Division M makes product M using one unit of component L and other materials. It then sells the completed
product M to external customers. To date, Division M has always bought component L from Division L.
The following information is available:
Division L charges the same price for component L to both Division M and external customers. However, it does not incur the selling and distribution costs when transferring internally.
Division M has just been approached by a new supplier who has offered to supply it with component L for $37 per unit. Prior to this offer, the cheapest price which Division M could have bought component L for from outside the group was $42 per unit.
It is head office policy to let the divisions operate autonomously without interference at all.
Required:
(a) Calculate the incremental profit/(loss) per component for the group if Division M accepts the new supplier’s
offer and recommend how many components Division L should sell to Division M if group profits are to be
maximised. (3 marks)
(b) Using the quantities calculated in (a) and the current transfer price, calculate the total annual profits of each division and the group as a whole. (6 marks)
(c) Discuss the problems which will arise if the transfer price remains unchanged and advise the divisions on a suitable alternative transfer price for component L. (6 marks)
第10题
A.下行Comp功能要求传输带宽20Mbps~50Mbps
B.上行Comp功能要求传输带宽30Mbps~300Mbps
C.下行Comp功能要求传输带宽30Mbps~300Mbps
D.上行Comp功能要求传输带宽20Mbps~50Mbps
第11题
How many employees currently work at Comp Co?
A.50
B.100
C.150
D.200
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