Agenda Today – Session 9

1. Agenda Today – Session 9 • Go over assigned problems • Answer questions • Take quiz A&MIS 525

2. Problem Background • California Instrument Company consists of two divisions: • Semiconductor division • Super-chip • Okay-chip • Process-control division • Process-control unit A&MIS 525

3. Cost Information A&MIS 525

4. Requirement 1 • Calculate the contribution margin per hour from producing and selling each OK-Chip and each Super-Chip. If no transfers are to be made to the Process-Control Division, how many OK-Chips and Super-Chips should the Semiconductor Division produce and sell? A&MIS 525

5. Requirement 1, Part A A&MIS 525

6. Requirement 1, Part B A&MIS 525

7. Requirement 2 • The Process-Control Division expects to sell 5,000 unit this year. From the viewpoint of California Instruments as a whole, should 5,000 Super-Chips be transferred to the Process-Control Division instead of purchasing circuit boards? A&MIS 525

8. Requirement 2 – Cost A&MIS 525

9. Requirement 2 – CM A&MIS 525

10. A&MIS 525

11. A&MIS 525

12. Requirement 3 A&MIS 525

13. Requirement 4 A&MIS 525

14. Requirement 4 A&MIS 525

15. Requirement 4 • Transfer price: • $46 to $50 on 10,000 Super-chips or less • $60 for each additional Super-chip A&MIS 525

16. Any Questions? A&MIS 525

17. Session 3 William F. Bentz January 22 , 2002 Fisher College of Business A&MIS 525

18. A&MIS 525

19. A&MIS 525

20. Problem Requirements A&MIS 525

21. Product Cost Characteristics A&MIS 525