【文章內(nèi)容簡介】 minimum transfer price for the excess capacity because the Glassware Division will be worse off if the transfer price does not cover its variable manufacturing costs). Yes, the transfer should take place. 2. Eric might negotiate for a lower price. Jill would consider the $ price, as her ine would increase $125,000 [($ – $) 100,000]. 3. Full manufacturing cost is $ ($ + $), so $ would be the transfer price. The transfer could take place since $ is between the minimum and maximum prices of the negotiating set. 10–7 1. The parable uncontrolled price method should be used because a market price exists. 2. Market price ....................... $ Plus shipping, duties .......... Less marketing costs ......... () Transfer price .............. $ 218 10–8 1. The parable uncontrolled price method should be used because a market price exists. Market price ....................... $ Plus shipping, duties .......... Less marketing costs ......... ( ) Transfer price .............. $ 2. The costplus method should be used because a market price does not exist, and the . division is not going to resell the paint. Manufacturing cost ............ $ Plus shipping, duties .......... Transfer price .............. $ 10–9 1. The resale price method should be used because a market price does not exist and the paint will be resold and not used in further manufacturing. 2. Resale price = Transfer price +( Transfer price) $18 = Transfer price Transfer price = $18/ = $12 10–10 1. PacificRim: $126,000 – ( $900,000) = $18,000 European: $1,350,000 – ( $9,000,000) = $270,000 Residual ine is an absolute dollar measure, so it does not adjust for the relative sizes of the divisions. 2. PacificRim: $18,000/$900,000 = 2% European: $270,000/$9,000,000 = 3% It is now possible to say the European Division is relatively more profitable than the PacificRim Division. 3. PacificRim: $126,000/$900,000 = 14% European: $1,350,000/$9,000,000 = 15% 219 ROI can be used to pare relative divisional profitability. 10–10 Concluded 4. PacificRim: 2% + 12% = 14% European: 3% + 12% = 15% The residual rate of return and the required rate of return will always sum to the ROI. 10–11 1. A B C D Revenue ............. $10,000 $48,000 $96,000 $19,200* Expenses ........... $8,000 $36,000* $90,000 $18,000* Net Ine ......... $2,000 $12,000 $6,000* $1,200* Assets ................ $40,000 $96,000* $48,000 $9,600 Margin ................ 20%* 25% %* % Turnover ............ * 2* 2 ROI ..................... 5%* %* %* %* *Indicates calculated amounts. 2. A’s residual ine = $2,000 – ( $40,000) = ($1,600) B’s residual ine = $12,000 – ( $96,000) = $3,360 C’s residual ine = $6,000 – ( $48,000) = $1,680 D’s residual ine = $1,200 – ( $9,600) = $336 10–12 1. Net ine = $1,000,000 – $600,000 – $100,000 = $300,000 Residual ine = $300,000 – ()($1,500,000) = $75,000 2. ROI = $300,000/$1,500,000 = , or 20% 220 10–13 If Casey accepts the new position, she will earn $56,000 (salary of $40,000 and bonus of $16,000) in Year 1. After two years, if Litton’s stock rises at the same rate as it has over the past five years, she will be able to exercise her stock option and realize a gain of the following: Price of stock in two years ($12 10,000).............. $ 158,700 Exercise price of stock ............................................................... 120,000 Gain...................................................................................... $ 38,700 Casey will clearly be better off financially right away. Her salary plus bonus with Litton is $1,000 higher than her current salary. In addition, if the increase in ine for the Financial Services Division can be sustained, she stands to make considerably more through bonuses in the ing years. The stock option, exercisable in two years, also gives Casey the potential to make another $38,700. On the down side, Casey’s current salary is reasonably secure. The Litton position has a lower guaranteed salary and the risk of bonuses and option values which may not be realized. If the financial services industry experiences a downturn, Casey will suffer no matter how well she personally performs. The final decision rests on Casey’s assessment of the risk versus reward of the two positions. She should also consider the risk of remaining in her present position。 that is, what are her prospects for making partner at the public accounting firm? 221 PROBLEMS 10–14 1. Since the Transistor Division can sell all its transistors to the outside petitive market, the minimum transfer price is $. The Systems Division can buy its transistors from the outside market at $, so the maximum transfer price is $. 2. Yes, since the minimum transfer price for the idle capacity is $ ($ less the $ of allocated fixed overhead). The Division is better off if the transfer price is greater than $ for the excess capacity. 3. The negotiated price of $ provides profit for both the Board Division and the Systems Division. The Board