Calculate the incremental cash flows to Celtex if the consumer product division from Synchem vs Meas Chemicals
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Description
- Calculate the incremental cash flows to Celtex if the consumer product division from Synchem vs Meas Chemicals?
Solution:
Celtex is a large decentralised speciality chemical producer. The Company is divided into five independent investment centres. The Company's division supplying raw material to other divisions and each division has separate investment centre. Paul Juris is the president of the consumer products division and Don Horigan is the president of synthetic chemicals (synchem) division. For Q47 products, bidding offered by Sychem is where as an outside firm Meas Chemicals is .
Cost Break up of Q47
Raw Material
Processing Cost
Fixed Cost
Total Cost
Option 1:
If consumer products division procured Q 47 from synchem division, then cash flow...
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Published On:
12/12/2014
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