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Saturday, November 23, 2013

Creative Division

3 (a) The Creative Division (CD) of Unique Components Ltd produces wooden brokers that it some(prenominal) sells to extraneous customers and canalises to other divisions at heart its own group of companies. The fruit involves the homework of timber, cutting the timber into shapes and the assembly of the shapes into components. The meat component exist for component A has been estimated as $41.21 per whole. Selling monetary values to external customers devote been organise by adding a mark-up of 35% to total estimated component cost. mandatory: Discuss the application and acceptability of individually of the following transfer price bases at which component A may be offered by CD to other divisions within the same group of companies: (i) outside selling price and familiarised selling price; (ii) b dictateline cost marginal cost plus an annual jut sum; and (iii) Dual pricing. Your serve should incorporate illustrative set ($) for each transfer price using dat a provided above and additional data of your choice. (10 marks) (b) A redesign of component A is creation considered that is likely to resultant in changes in the meter of timber and calculate of cuts, in the look on process that go forth be required. A data-table abstract has been prepared to monitor the effect on unit cost for component A of a ordinate of determine for such changes.
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In addition, a set of subjective probabilities nurse been assigned to the likelihood of (i) the timber required and (ii) the number of cuts required, be at the levels shown in the data-table analysis. A matrix has be en constructed showing the feature chance! for each possible combination of changes of timber and number of cuts. The data-table analysis and combined probability matrix are as follows: Data-table of values of total component cost for component A per unit ($) for a range of values of number of cuts in shaping and timber required (square metres) Timber (square metres) Number of cuts 25 30 35 40 50 0.8 47.15 47.69 48.15 48.55 49.21 0.7...If you want to countenance a full essay, order it on our website: OrderCustomPaper.com

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