Taqusren PLICE Zz chaaged ry 00 Segnat te anetinn — Goad tong rust 0 tof ead fo tug 6 bee tyr low Sethe Q) Intiate wten. thay saad Hm2 Whar amovel Oh Th fowls wo ot 2 Prat. Covng. Worked Merket poi - Hh NUEIysrative Problem 1. SOFTORINKS inc, hos 2 segments, PEPSI ond COKE. Segment PEPSI produces and sells bottles while segment COKE procuces ond sells dinks. Eoch of the segments are evaluoled based on tnek inavioval performance, Segment PEPSI hos 0 capacity of 100 000 bottles each year. The ‘demand for this product is unimited. meoning PEPSI can sell ot the bottles gan produce. Seling price in the marke! for his product is @1E9Vorioble costs (including seling expense of el Fxed cos! per unit based on the capacity is 4.00, SegmeA COKE needs 40 C60 bois fo contain is rks Segment COKE'S dink se for P30 6 bottle. It con aurcnese Botts worth 5:00 eae from an outside supple. The sling ‘expenses wil no be incured if COKE wil purchase the bettas ‘rom PEPSL tis einer COKE wa purchase all 0000.ottes or none ata. inadtion o purchose pice ofthe bot, COKE incu P2 ‘orabie production cos! per unit and P8000 total faed cos ©. Whol s the maximum price? ©. Whos he minimum picet €. Shoud they rarsact wih each other? NO 6. What s the opproprioe translerprice? J®hR May {wie = & 5.80% Lac. boas 4 ep foe Vd f lent on a 44 = {7.9sa SS Ss ae FBS We oochs - A gt bottles worth PS.,00"e0eh"from an outside supplier. The selling Meera ohe' coco psc Utne ete - Stadion suche cea he eave Coe eee = at eget so cna et la eon sPiertibe rasmumpscar 9.8 B: net site mnen pacer €. Should they transact with each othert NO . & Whot she appropsicte rersterpece? JOR bot Mae 45.0 ‘Assume instead ho! the annual demand tor FERS batiess (YK Out Say Bebo wen he Co soobienconte meleach Sn dar ee peony 4 oe ole Man dwar 2.0 o. Whotstte maximum cet /~ B. wnet sine minum cet Ye (seh ©, Shou moy wonet wh 2ochohert cut & ihetstte oopenicieromtorprce? lag 46 OEM Sct ee eS tonentonte oe och Fee 7a att tensimmnint £ Ws] Mia + SORTA 3 96 Ye ee ve OC sMinetemsoretrms wna Matt Oy 3( I) magis dS See Te 29th Ce tabs 2 dalelintcverotion2 AMOMOIOne netwgrenn tecsere MOF 2 FSD & want gine Ines Neckcosengickahtek atte great, produces ond sells cars. Eoch of the segments ore Me N= 4 JM valicied based on thei individual performance, i out Segment TIRES has a capacity of 80_000 wheels each year. Tete. Current, TRES sels 70D00aheek to outs customers. Seling EKO Fixed costs totaled P200,000. Segment Sects ren Gy, pave PAHO Jearrom on tise per Jr's einer EOAN wal yy (210k) C 40K per fase al 10 050 whee ore cl. in Bree eee 8 ro wm won rawness ay yank — 299K production cos per uni and P60,600 tole xed cod ok) 1 shoud ne wo segment ronaetwineacr omer Yeo bd CLstk) C gpk) Ge 2 Overt elec om prolly I SEDAN boys tom gutige FC LANE! eu 5 Oiealetecsotprtsitwoscemensionactolsee pf Bpaek [se 2 rt iy 4. Overall effects of profits if two segments transact ot P5 per id a nit,pie scanty vy IDE) moo ay uate production cost por 80,000 total fixed 1, Should the two segments transact with each other? TES 5 Betarmmctegrntroncreanenncrn ee +d CURE) ee oink en a 5 Grete oh we beth QV CL Te thus ene Gipes Pome Gan PIN fe EA Cop ce) ye at) uM 4 SOK fak 4 7406 Be ‘got Fe (aeek) C&R) Caspr) we ot ays 41gnk go CA) Keer iy Frek PK a Cok) ae) gue 15K 5 Senne eth pier fms YE sok) Gaak 2 © Ge Fre, Con (are) we rok Uwe 2 em esMt we ag, : = gk05 OO anuuir 95 fut Rice sensor ren one scene Sele be sold ether to METHYL Divison er outsice customers. Ine Salin (PricanissP12500 for A51020, variable cos! per YL can produce 20 009 uni Ouwscen comurie utsers AsI0zts purcnaxed by METHYL were sod ct pot of rocuer 17870, One Assess used fo" each IeFS7O, MEHL Ire ans coon Men 0 secs eM on sor #30000. MENT. cone? exBencng ts operoters. Hence, Ima rege on chon Oust ASE, ASTER ot Grchobloty sn Soh mek sere labia in cn ouside ma '. Should SOPROPHYL Division sel 1 600 odaitional AS10205 fo METHYL at the expense of oulsice buyers? How much ie the effect on overol aris ! SOPROPHYL wil sel 1 000 ofthe uns located for oubicers fo METHYL inslead? ', Assume tho! the edliono! 000 units be produced by tequting overtime work and hence may be extremely high. what is the maximum orice METHYL Division wil ‘accept for the ation 1 000 unis® ie io coufonert — wet aw. ow fing outule weed ® stall pohSee Mitac tense swe ied pacts cc to Seonicaae ner reat cai pPlo pea worse te Fag000, METNYL corde exboncng Fe operotors Hence, t may fequite an ional 0 etre [ASTO20, AS10008 are not vatabie on ove mal ee azabin an ou'sice MOF <: shoud SOFROPIM Dison el 000 odktonal As ozts Teniennvot ne xpos of utes soyont now muck \{U5. Tie etect on oerotpro # SOMROPMT use GOO Srinc unis choscegtereusiges te MET cout Movin el he aattorclOodun be prouvces oy torgsmelcneatertienss marie oemey Fights he mantnem once MENT Chon vl Secep tre easier 1 06 vse 200 pesos © adall 10 wes SP 00 le Cedrfum| 20 |x (nc-fuyt = 2 = ds 4 [0m 45 v0 ty puoi pure lucO bod - bared fromer poe ot. 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