Apple Inc. has presented the below information related to manufacturing of iPhone 7 at the yearend December 2016:
Selling and administrative costs:
Fixed $400,000
Variable per unit $25 each
Total sales units 340,000 @$210 each
Manufacturing costs:
Fixed $11,000,000
Variable cost per unit @$120 each
Balance in finished units at the start of the year 90,000
Balance in finished units at the close of the year 150,000
Net income under absorption costing is
A. $12,250,000
B. $21,125,000
C. $12,350,000
This Question Belongs to User Ask Question >> Miscellaneous
Join The Discussion
Comments ( 1 )
Related User Ask Questions
Which of the following is not a primary function of a Bank?
A. Granting Loans
B. Collecting Cheques/Drafts customers
C. Facilitating import of goods
D. Issuing Bank Drafts
A. Regulatory jurisdictional fight between SEBI and IRDA
B. They don’t offer better tax benefits
C. They offer lesser returns compared to traditional insurance policies
D. All of the above
The Chameli Devi Jain Award is given for an outstanding woman ____?
A. Scientist
B. Reporter
C. Player
D. Teacher
Watts Company makes various electronic products. The company is divided into a number of autonomous divisions that can either sell to internal units or sell externally. All divisions are located in buildings on the same piece of property. The Board Division has offered the Chip Division $23 per unit to supply it with chips for 40,600 boards. It has been purchasing these chips for $24.19 per unit from outside suppliers.
The Chip Division receives $25.10 per unit for sales made to outside customers on this type of chip. The variable cost of chips sold externally by the Chip Division is $16. It estimates that it will save $3 per chip of selling expenses on units sold internally to the Board Division. The Chip Division has no excess capacity.
What is the minimum transfer price that the Chip Division should accept? (Round answer to 2 decimal places, e.g. 10.50)