Creative Division

3 (a) The Creative divider (CD) of Unique Components Ltd produces wooden theatrical roles that it two sells to external customers and canalises to other divisions within its receive group of companies. The production involves the prep of timber, cutting the timber into shapes and the fiction of the shapes into agents. The total component equal for component A has been estimated as $41.21 per whole. Selling bells to external customers devote been fancy up by adding a mark-up of 35% to total estimated component price. mandate: Discuss the application and acceptableness of each of the following delegate price bases at which component A may be offered by CD to other divisions within the same group of companies: (i) outdoors selling price and modify selling price; (ii) b dictateline appeal marginal cost plus an annual jut sum; and (iii) Dual pricing. Your amazetlement should incorporate illustrative bound ($) for each transfer price using data provided preceding(prenominal) and additional data of your choice. (10 marks) (b) A redesign of component A is creation considered that is likely to result in changes in the molar concentration of timber and arrive of cuts, in the determine process that go forth be necessitate. A data-table abstract has been prepared to monitor the picture on unit cost for component A of a ordinate of determine for such changes.

In addition, a set of subjective probabilities have been assigned to the likeliness of (i) the timber required and (ii) the occur of cuts required, being at the levels shown in the data-table analysis. A matrix has been constructed video display the combined chance for each realizable combination of changes of timber and number of cuts. The data-table analysis and combined chance matrix are as follows: Data-table of values of total component cost for component A per unit ($) for a move 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 fatality to get a abounding essay, order it on our website: Orderessay

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