1.Prepare an activity-based customer-cost report, distribution channel cost report and a customer-profitability analysis for the five customers. Ensure that you also include an overall total profitability analysis for the business.
3.Calculate the contribution margin per hour of selling the Super-chip and the Okay-chip. If no transfers of Super-chip are made to the Process Control Division, how many Super-chips and Okay-chips should the Semiconductor Division manufacture and sell? Show your calculations.
4.The Process Control Division expects to sell 5000 process-control units this year. From the viewpoint of AIC as a whole, should 5000 Super-chips be transferred to the Process Control Division to replace circuit boards? Show your calculations.
5.What transfer price, or range of prices, would ensure goal congruence among the division managers? Show your calculations and provide an explanation.
6.If labour capacity in the Semiconductor Division were 60 000 hours instead of 45 000 hours, would you answer differently to requirement 3 above? Show your calculations and provide an explanation.
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