Acme Manufacturing Corporation Has Two Divisions L And H

Sells 80000 units of part z 25 to the outside market. One of their most profitable divisions is walker products which last year had roa of 20 1600000 operating income on assets of. The corporations net operating income is 10700.

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Chipper division of acme corp.

Acme manufacturing corporation has two divisions l and h. Division l is the companys low risk division and would have a weighted average cost of capital of 8 if it was operated as an independent company. Following information pertains to job 700. Acme electric corporation was founded in 1917 in cleveland ohio. Overhead rates in finishing and fabrication are 1800 per direct labor hour and 110 of.

Acme manufacturing corporation has two divisions l and h. The baj division and the cbb division. Jones division currently purchases 10000 units of part z 25 from chipper for 40. Since that time acme has been a leader in supplying power conversion equipment to the electrical and electronic markets.

Division l is the companys low risk division and would have a wacc of 8 if it were operated as an independent company. Acme manufacturing is a decentralized corporation. In recent years acme has been running about 11 roa for the corporation as a whole and has a cost of capital of 8. What is the amount of the common fixed expense not traceable to the individual divisions.

And the canadian standards association. Part z 25 sells for 40 has a variable cost of 22 and a fixed cost per unit of 10. Division h is the companys high risk division and would have a wacc of 14 if it were operated as an independent company. The baj divisions divisional segment margin is 76100 and the cbb divisions divisional segment margin is 42300.

The companys direct labor wage rate is 1600 per hour. Direct materials cost respectively. Because the two divisons are the same size the company has a composite. Divisions are treated as investment centers.

Chipper has a capacity to produce 100000 units per period. Cintas leads the industry in supplying corporate identity uniform programs providing entrance and logo mats restroom supplies promotional products first aid safety fire protection products and services and industrial carpet and tile cleaning. Braverman company has two manufacturing departmentsfinishing and fabrication. Has two divisions l and h.

Acme products are manufactured to meet or exceed the high standards set by ul. Brummitt corporation has two divisions.