[sheri12]

thanks a lot sir !

[sheri12]

Thanks sir, yes i have copied the complete question
and the only part i missed is “there is no opening or closing inventory”

[sheri12]

YES SIR I HAVE WATCHED YOUR LECTURES ON TRANSFER PRICING !

thanks a lot sir !

[sheri12]

and for the question regarding drop in monthly profit of division?
its answer is a net decease of $10000 !

[sheri12]

sir its kaplan kit question #222 and its not a past question its kits own question
sir the answers are
BODGE CO if accepts the offer
A)profits would increase by $9000
B)profits would increase by $15000
C)profits would decrease by $9000
D)profits would decrease by $14500

and i have typed the complete information given !

[sheri12]

Oh sorry
Thanks a lot sir !

[sheri12]

THANKS A LOT SIR !

[sheri12]

Thanks but if you see the solution their is Stepped supervisor costs God knows from where this cost is taken !

[sheri12]

I cant understand it by the help of algebra method !

[sheri12]

Another thing sir its given that there is minimum demand that must be completed that’s 30, 20, 10 for the products kindly guide me regarding to these?

[sheri12]

Sir thanks a lot !

[sheri12]

For calculation of factory hour don’t we divide “throughput per unit by Products time on bottleneck resource”?
and sir don’t we use throughput accounting ratio for ranking normally?
1.50-0.25=1.25 is throughput per unit I get it and by 20/60 we found time in hour from minutes what I didn’t understand why you divided it by 40 thanks

[sheri12]

Thanks a lot sir ! that really helped me

[sheri12]

Thanks a lot Sir ! @John Moffat

[sheri12]

@hammad7867 in Kaplan kit they ignored this opportunity cost in the calculation !

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