Venetian corporation manufactures car stereos it is a, Ask an Expert

Accounting

Venetian Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Venetian sells car stereos to Berna, as well as to other vehicle manufacturers and retail stores. The following information is available for Venetian's standard unit: variable cost per unit $34.96; fixed cost per unit $22.97; and selling price to outside customer $86.26. Berna currently purchases a standard unit from an outside supplier for $79.71. Because of quality concerns and to ensure a reliable supply, the top management of Berna has ordered Venetian to provide 221,000 units per year at a transfer price of $34.96 per unit. Venetian is already operating at full capacity. Venetian can avoid $4.19 per unit of variable selling costs by selling the unit internally. Answer each of the following questions.

What is the potential loss to the corporation as a whole resulting from this forced transfer? (Round answer to 0 decimal places, e.g. 125.)

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9958766

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - the structure of a typical organization is

Question - The structure of a typical organization is similar to a pyramid, with different levels that require one consistent type of information to assist with all managerial decision making. Explain a typical corporati ...

Discussion accounts receivablesfinancial accountingaccounts

Discussion: "Accounts Receivables" Financial Accounting Accounts Receivables • What is the importance of the turnover of Accounts Receivables? • Why is it is essential for organizations to keep cash reserves on hands? • ...

Question requirement 1 read the article in below attachment

Question: Requirement: 1. Read the article in below attachment, and answer the questions in a paper format. Read below requirements before your writing! 2. Not to list the answers, and you should write as a paper format. ...

Question - pharoah company purchased equipment for 11160 on

Question - Pharoah Company purchased equipment for $11160 on January 1, 2017. The company expects to use the equipment for 3 years. It has no salvage value. Calculate the Monthly depreciation expense on the asset?

Question assessment type case study assignment- purpose

Question: Assessment Type: Case Study Assignment- Purpose: This assessment will allow students to demonstrate their understanding of auditing standards, procedures and techniques, how they are applied in organisational s ...

Question - legacy issues 325000 of 5 four-year bonds dated

Question - Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 and their market rate is 8% at the issue date. Determ ...

Question - the asset account office supplies had a

Question - The asset account, Office Supplies had a beginning balance of $5,700. During the accounting period, office supplies were purchased, on account, for $5,100. A physical count, on the last day of the accounting p ...

Question - geraldo recently won a lottery and chose to

Question - Geraldo recently won a lottery and chose to receive $145,000 today instead of an equivalent amount in 10 years, computed using an 8 percent rate of return. Today, he learned that interest rates are expected to ...

Question cost management is particularly important in the

Question: Cost management is particularly important in the banking industry where pricing is competitive and interest rates are set by a combination of market forces and regulatory policies. Fictitious Bank Corp, is a mi ...

Question - a husband and wife received 7200 of social

Question - A husband and wife received $7,200 of social security benefits What is the taxable amount if the husband and wife's provisional income is $33,000? What is the taxable amount if the husband and wife's provision ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert