Professional Documents
Culture Documents
oninvestment
(ROI)=
13-5 Return
income
income
sales
revenue
=
invested
capital sales
revenueinvested
capital
Residual
income
= investment
center'
sprofit
invested
capital
interest
rate
Economic Investment
center'
s
value =
after
- tax
added
operating
income
Investment Investment
-average
Weighted
center'
s
center'
s
costof
total
assets current
liabilitie
s
capital
center'
s imputed
investment
Residual
income
= investment
center'
sprofit
capital interest
rate
invested
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
basis
of
of
McGraw-Hill/Irwin
Inc.
13-6
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
SOLUTIONS TO EXERCISES
EXERCISE 13-24 (10 MINUTES)
income
=
sales
revenue
sales
revenue
Capital =
=
invested
capital
turnover
income
Return on =
=
invested
capital
investment
Sales margin =
$4,000,000
= 8%
$50,000,00
0
$50,000,00
0
= 2.5
$20,000,00
0
$4,000,000
= 20%
$20,000,00
0
$5,000,000
$50,000,00
0
$50,000,00
0 $20,000,00
0
$4,000,000
$50,000,00
0
$50,000,00
0 $16,000,00
0
= 8% 3.125 = 25%
Since sales revenue remains unchanged, this implies that
the firm can divest itself of some productive assets without
McGraw-Hill/Irwin
Inc.
13-8
= investment
center income
invested imputed
capital interest
rate
= $4,000,000
($20,000,000 11%)
= $1,800,000
EXERCISE 13-27 (20 MINUTES)
The weighted-average cost of capital (WACC) is defined as
follows:
Weighted
-average
costof
=
capital
- taxcost
After
Market
Costof Market
+ equity
value
ofdebt
value
capital
ofequity
capital ofdebt
Market
Market
value +
value
ofdebt
ofequity
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
(.06)($60,
000,000)
+ (.15)($90,
000,000)
= .114
$60,000,00
0+ $90,000,00
0
added
operating
income
Investment Investment
-average
Weighted
center'
s
center'
s
costof
total
assets current
liabilitie
s
capital
Current
Liabiliti
es
(in
millions
)
Total
Assets
(in
millions)
(in
millions)
we
have
the
Econom
ic Value
Added
(in
millions
)
WAC
C
$20(1.4
0)
$100
$6
.114
$1.284
$18(1.4
0)
$ 60
$4
.114
$4.416
a.
R
OI
$12,600
,000
12,000,
000
$24,600
,000
$12,300
,000
income
from
operations
before
income
taxes
average
productive
assets
$2,460,000
= $12,300,00
0
= 20%
McGraw-Hill/Irwin
Inc.
13-10
$12,300
,000
Imputed interest rate...................
.
15
Imputed interest charge..............................
Residual income.............................................
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
$
2,460,0
00
1,845,0
00
$
615,000
Date:
Today
To:
From: I. M. Student
McGraw-Hill/Irwin
Inc.
13-12
Subje
ct:
2
.
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
income
Sales =
=
sales
revenue
margin
100,000
*
= 5%
2,000,000
McGraw-Hill/Irwin
Inc.
13-14
2
.
Income = 15%
1,000,000
income
1,000,000
= 150,000
Sales
margin
150,000
income
= 7.5%
= sales
revenue= 2,000,000
Transfer
price
outla
opportu
+
y
nity
cost
cost
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
Transfer
price
outl
opportu
ay +
nity
cost
cost
= $300 + 0 = $300
McGraw-Hill/Irwin
Inc.
13-16
2
.
$374
100
474
$(9)
3
.
$465
$465
$300
100
400
$ 65
outla
opportu
+
y
nity
cost
cost
= $300 + 0*
= $300
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
McGraw-Hill/Irwin
Inc.
13-18
SOLUTIONS TO PROBLEMS
PROBLEM 13-36 (25 MINUTES)
The answer to the question as to which division is the most
successful depends on the firm's cost of capital. To see this,
compute the residual income for each division using various
imputed interest rates.
(
a)
Divisional profit..................................
Less:.............Imputed interest charge:
I: $6,000,000 10%....................
II: ....................$1,000,000 10%
Residual income..................................
Division
I
$900,00
0
600,000
_______
Division
II
$200,00
0
$300,00
0
100,000
$100,00
0
Division
I
$900,00
0
Division
II
$200,00
0
840,000
________
$
60,000
140,000
$
60,000
$900,00
0
$200,00
0
900,000
________
150,00
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
0
$
0
50,000
McGraw-Hill/Irwin
Inc.
13-20
Sales revenue............................
Income......................................
Average investment...................
Sales margin..............................
Capital turnover.........................
ROI............................................
Residual income.........................
Explanatory notes:
a
Sales
margin
=
income $2,000,000
=
= 20%
sales
revenue$10,000,00
0
sales
revenue$10,000,00
0
Capital
turnover
=
=
=4
invested
capital $2,500,000
Residual income
(invested capital)
d
income
sales
revenue
20% =
$400,000
sales
revenue
Sales
margin
e
Capital
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
sales
revenue
invested
capital
2002 The McGraw-Hill Companies,
13-21
turnover
1 =
$2,000,000
invested
capital
RO
McGraw-Hill/Irwin
Inc.
13-22
20
%
= 25% capital
trunover
ROI =
income
= 20%
invested
capital
RO
income
invested
capital
income
20 =
$1,000,000
%
Therefore, income = $200,000
income
Sales =
sales
revenue
margin
l
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
25% =
$200,000
sales
revenue
income
$2,250,000
=
= 90%
invested
capital$2,500,000
2
.
RO
I
income
$2,100,000
=
= 87.5%
invested
capital$2,400,000
McGraw-Hill/Irwin
Inc.
13-24
Divisional profit..................................
Less: ............Imputed interest charge:
I: ....................$6,000,000 12%
II: ...................$1,000,000 12%
Residual income.................................
2
.
Division
I
$900,00
0
720,000
Division
II
$200,00
0
$180,00
0
120,000
$
80,000
Division
I
$900,00
0
Division
II
$200,00
0
Divisional profit...................................
Less: .............Imputed interest charge:
I: .....................$6,000,000 15%
II: ....................$1,000,000 15%
Residual income...................................
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
900,000
$
0
150,000
$
50,000
Division
I
$
900,000
1,080,0
00
$(180,0
00)
Division
II
$200,00
0
180,000
$
20,000
McGraw-Hill/Irwin
Inc.
13-26
Ye
ar
1
2
3
4
5
Income
Income
Before
Annual
Net of
Deprecia Deprecia Deprecia
tion
tion
tion
$150,0
00
150,00
0
150,00
0
150,00
0
150,00
0
$200,000 $(50,000
)
120,000 30,000
72,000
78,000
54,000
96,000
54,000
96,000
Avera
ge
Net
Book
Value
*
$400,
000
240,0
00
144,0
00
81,00
0
27,00
0
ROI
Based
on
Net
Book
Value
12.5%
54.2%
118.5
%
355.6
%
Avera
ge
Gross
Book
Value
ROI
Base
d on
Gross
Book
Value
$500,
000
500,0 6.0%
00
500,0 15.6
00
%
500,0 19.2
00
%
500,0 19.2
00
%
1
.
This table differs from Exhibit 13-3 in that ROI rises even
more steeply across time than it does in Exhibit 13-3. With
straight-line depreciation, ROI rises from 11.1 percent in
Year 1 to 100 percent in Year 5. Under the accelerated
depreciation schedule used here, we have a loss in Year 1
and then ROI rises from 12.5 percent in Year 2 to 355.6
percent in Year 5.
2
.
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
McGraw-Hill/Irwin
Inc.
13-28
Ye
ar
1
Income
Income
Before
Annual
Net of
Deprecia Deprecia Deprecia
tion
tion
tion
$100,00
0
100,000
$50,000
$150,00
0
150,000
150,000
100,000
50,000
150,000
100,000
50,000
150,000
100,000
50,000
50,000
Avera
ge
Net
Book
Value
*
$450,
000
350,0
00
250,0
00
150,0
00
50,00
0
Imput
ed
Resid
Inter
ual
est
Incom
Char
e
ge
$45,0
$
00 5,000
35,00 15,00
0
0
25,00 25,00
0
0
15,00 35,00
0
0
5,000 45,00
0
$500,
000
500,0
00
500,0
00
500,0
00
500,0
00
$50,00
0
50,000
50,000
50,000
50,000
0
0
0
0
0
*Average net book value is the average of the beginning and ending balances for
the year in net book value.
Imputed interest charge is 10 percent of the average book value, either net or
gross.
McGraw-Hill/Irwin
Managerial Accounting, 5/e
McGraw-Hill/Irwin
13-30
Less:
Variable
costs $5,880,
($8,400,000 x 70%)
000
Fixed
2,150,
8,030,
costs..
000
000
Income
$
..
370,00
0
ROI = Income invested
capital
= $370,000 $1,850,000
= 20%
Northeasts ROI if competitor is acquired:
Sales revenue ($8,400,000 +
$13,600
$5,200,000).
,000
Less: Variable costs
[$5,880,000 +
$9,260,
($5,200,000 x 65%)]
000
2.
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
McGraw-Hill/Irwin
Inc.
13-32
5.
Less:
Imputed
interest
charge
($1,850,000 x 12%)
Residual
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
$370,
000
222,
000
$148,
income
..
000
$520,
000
342,
000
$178,
000
McGraw-Hill/Irwin
Inc.
13-34
Return on investmenti:
income divided by invested
capital (or sales margin x capital turnover).
Sales margin: $360,000 $4,800,000 = 7.5%
Capital turnover: $4,800,000 $6,000,000 = 80%
Return on investment: $360,000 $6,000,000 = 6%, or
7.5% x 80% = 6%
2.
3.
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
Current
Income $
.
360,00
0
Invested
6,000,
capital
000
ROI
6%
Current
+
Anderso
n
$
960,000
*
11,000,
000
8.73%
Current +
Anderson
+ Palm
Beach
$
1,340,000
**
15,750,0
00
8.51%
McGraw-Hill/Irwin
Inc.
13-36
Weighted
-average
costof
=
capital
- taxcost
After
Market
Costof Market
+ equity
value
ofdebt value
capital
ofequity
capital ofdebt
Market
Market
value +
value
ofdebt
ofequity
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
(.054)($80
,000,000)
+ (.14)($120
,000,000)
= .1056
$80,000,00
0+ $120,000,0
00
Economic Investment
center'
s
value =
after
- tax
added
operating
income
Investment Investment
-average
Weighted
center'
s
center'
s
costof
total
assets current
liabilitie
s
capital
Food
Service
Current
Liabiliti
es
(in
millions
)
Total
Assets
(in
millions)
(in
millions)
WAC
C
Econom
ic Value
Added
(in
millions
)
$29(1.4
0)
$145
$3
.
= $2.4048
1056
$15(1.4
0)
$ 64
$6
.
= $2.8752
1056
Weighted
average =
costof
capital
- tax
After
Costof Market
costof Market
value
+
equity
value
of
debt
capital
equity
capital
ofdebt
Market
Market
value +
value
ofdebt
ofequity
McGraw-Hill/Irwin
Inc.
13-38
(.063)($40
0,000,000)
+ (.12)($600
,000,000)
= .0972
$400,000,0
00+ $600,000,0
00
Divisio
n
3.
After-Tax
Total
Operatin
Asset
g
s
Income
(in
(in
millio
millions)
ns)
Curren
t
Economic
Liabilit
Value
WAC
ies
= Added
C
(in
(in
million
millions)
s)
Pacific.
$14
(1.30)
[($
70
$6)
Plains..
$45
(1.30)
[($30
0
$5)
Atlantic $48
(1.30)
[($48
0
$9)
.
097
2]
.
097
2]
.
097
2]
=$
3,579,20
0
=$
2,826,00
0
= $(12,181,
200)
a.
Transfer
price
b. Transfer
price
a.
Transfer
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
price
= $65 + 0 = $65
b. When there is no excess capacity, the opportunity cost
is the forgone contribution margin on an external sale
when a frame is transferred to the Glass Division. The
contribution margin equals $15 ($80 $65). When there
is excess capacity in the Frame Division, there is no
opportunity cost associated with a transfer.
McGraw-Hill/Irwin
Inc.
13-40
$155
$15
20
30
30
15
30
140
$15
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
$ 155
$99
30
15
30
174
$ (19)
McGraw-Hill/Irwin
Inc.
13-42
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
2.
$1,4
00
1,4
20
$
(20)
3.
4.
McGraw-Hill/Irwin
Inc.
13-44
Sales
revenue
.
Less:
Variable
cost::
$500
..
$500
+
$670
Contribution
margin..
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
Produce
Diode; Sell
Externally
Produce
Diode;
Transfer; Sell
Positioning
System
$775
$1,400
500
1,170
$275
230
Less:
Transfer
price.
Shipping
fees.
Additional
processing
costs..
Import duties ($130.00 x
10%)
Income
before
tax.
Less: Income tax expense
($82.00 x 60%).
Income
after
tax
2.
$130.0
0
130.0
0
$ --
$360.0
0
$130.
00
20.
00
115.
00
13.
278.0
00
0
$
82.00
49.2
0
$
32.80
McGraw-Hill/Irwin
Inc.
13-46
$170.0
0
.
Less:
Variable
manufacturing
cost..
Income
before
tax.
Less: Income tax expense ($40.00 x
40%).
Income
after
tax.
German operation:
Sales
revenue
Less:
Transfer
price.
Shipping
fees.
Additional
processing
costs..
Import duties ($170.00 x
10%)
Income
before
tax.
Less: Income tax expense
($38.00 x 60%).
Income
after
tax
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
130.0
0
$
40.00
16.0
0
$
24.00
$360.0
0
$170.
00
20.
00
115.
00
17.
322.0
00
0
$
38.00
22.8
0
$
15.20
Yes.
Alpha will make $60.00 per circuit board
($24.00 + $36.00) if no transfer takes place and all
circuit boards are sold in the U.S.
U.S. operation:
Sales
revenue
.
Less:
Variable
manufacturing
cost..
Income
before
tax..
Less: Income tax expense ($40.00 x
40%)..
Income
after
tax.
German operation:
Sales
revenue
..
Less:
Purchase $155
price.
.00
Additional
processing
115
costs
.00
Income
before
tax...
Less: Income tax expense
McGraw-Hill/Irwin
Inc.
13-48
$170.
00
130.
00
$
40.00
16.
00
$
24.00
$360.
00
270.
00
$
90.00
54.
($90.00 x 60%)
Income
after
tax...
4.
00
$
36.00
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
2.
Selling price.........................................
Less: Variable costs:
Direct material..............................
Direct labor...................................
Manufacturing overhead................
Transfer price................................
Unit contribution margin.......................
Volume.................................................
Total contribution margin......................
Mining
Division
Metals
Division
$90
$150
12
6
16
20
24*
10
90
$ 24
$38
x
x400,000
400,000
$15,200,
$9,600,
000
000
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
4.
McGraw-Hill/Irwin
Inc.
13-52
5.
SOLUTIONS TO CASES
CASE 13-50 (40 MINUTES)
1
.
Operating income...................
Total assets............................
Return on investment
(income/assets)......................
Return on Investment
HEC
RLI
Combin
ed
$2,000,
$
$
000 600,000 2,600,0
00
8,000,0 3,000,0 11,000,
00
00
000
25%
20%
23.6%*
*Rounded.
The result would be that HEC's management would either
lose their bonuses or have their bonuses limited to 50
percent of the eligible amounts. The assumption is that
management could provide convincing explanations for the
decline in return on investment.
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
2
.
Total assets..........................
Income.................................
Less: Imputed interest charge
(assets 15%)...................
Residual income....................
Residual Income
HEC
RLI
Combin
ed
$8,000, $3,200,0 $11,200
000
00*
,000
$2,000,
$
$
000 600,000 2,600,0
00
1,200,0
00
$
800,000
480,000
1,680,0
00
$
$
120,000
920,000
McGraw-Hill/Irwin
Inc.
13-54
a.
Shy
away
from
profitable
opportunities
or
investments that would yield more than the
company's cost of capital but that could lower ROI.
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
Sales revenue
Variable costs:
Compressor
Other direct
material
Direct labor
Variable
overhead
Variable
selling
Total
variable costs
Contribution
margin
Per
Uni
t
$4
00
$
70
37
30
45
18
$2
00
$2
00
After 5%
Price
Reduction
Total
(in
Per
thousand Uni
s)
t
$6,000 $3
80
$1,050
555
450
675
270
$3,000
$3,000
$7
0
37
30
45
18
$2
00
$1
80
Total
(in
thousand
s)
Total
Differenc
e
(in
thousand
s)
$6,612.0
$612.0
$1,218.0
$168.0
643.8
88.8
522.0
72.0
783.0
108.0
313.2
43.2
$3,480.0
$480.0
$3,132.0
$132.0
Summarized presentation:
from
McGraw-Hill/Irwin
Inc.
13-56
300,000
Increase in net income before taxes
$132,000
2. No, the Compressor Division should not sell all 17,400
units to the Air Comfort Division for $50 each. If the
Compressor Division does sell all 17,400 units to Air
Comfort, Compressor will only be able to sell 57,600
units to outside customers instead of 64,000 units
due to the capacity restrictions. This would decrease
the Compressor Divisions net income before taxes
by $35,500. Compressor Division would be willing to
accept any orders from Air Comfort above the 64,000
unit level at $50 per unit because there would be a
positive contribution margin of $21.50 per unit.
Supporting calculations follow.
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
75,000
17,400
57,600
64,000
6,400
Solution:
Contribution from sales to Air Comfort ($21.50
$374,1
17,400) ...........................................................
00
Loss in contribution from loss of sales to outsiders 409,60
($64 6,400) ................................................
0
Decrease in net income before taxes ...............
$
35,500
3. Yes, it would be in the best interests of InterGlobal
Industries for the Compressor Division to sell the
units to the Air Comfort Division at $50 each. The net
advantage to InterGlobal Industries is $312,500 as
shown in the following analysis. The net advantage is
the result of the cost savings from purchasing the
compressor unit internally and the contribution
McGraw-Hill/Irwin
Inc.
13-58
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
$
70.00
28.50
$ 41.50
x
17,400
Total cost savings ..................... $722,100
Compressor Divisions loss in contribution from
loss
of sales to outsiders (see req. 2): $64
6,400 .............................................................. 409,600
Increase in net income before taxes for
InterGlobal Industries ..................................... $312,500
4. As the answers to requirements (2) and (3) show, $50 is
not a goal-congruent transfer price. Although a
transfer is in the best interests of InterGlobal
Industries as a whole, a transfer of $50 will not be
perceived by the Compressor Divisions management
as in that divisions best interests.
McGraw-Hill/Irwin
Inc.
13-60
GENERAL INSTRUMENTATION
COMPANY
Top Management
LowDensity
Panels
(LPD)
Outside
Market
VOLKMAR TACHOMETER
DIVISION
Bertram Mueller
Alternative
Alternative
1:
High2:
Transfer
Density
Buy the
the
Panels
HDPControlControl
(HPD)
Pack TCH-320
Pack
Tachometer
Imported
from Japan
Outside
Market
Outside
Market
2
.
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
LDP
$28
HDP
$ 115
$5
5
3
4
5
$5
30
8
12
15
70
$ 45
22
$ 6
Price...................................
Less: Variable cost:
Unskilled labor..............
Skilled labor.................
Raw material................
Purchased components.
Variable overhead.........
Variable cost of
manufacturing HDP
Variable cost of
transporting HDP.................
Total variable cost........
Unit contribution margin......
TCH-320
Using
Imported
Control Pack
$270.0
0
TCH-320
Using
an
HDP
$270.
00
$ 4.50
51.00
11.50
150.00
11.00
-0-
$4.50
85.00
6.00
5.00
11.00
70.00
-0-
4.50
228.00
$ 42.00
186.0
0
$
84.00
Difference
is $42.
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
Hudson Bay's
Product
HDP sold
externally
HDP transferred
internally
LDP
Unit Contribution
to
Covering the
Company's Fixed
Cost and Profit
$45
42
6
Hudson Bay's
Product
HDP sold
externally
HDP transferred
internally
LDP
McGraw-Hill/Irwin
Inc.
13-64
Unit
Contributio
n
Margin
$45
Skilled Labor
per
Unit Required
at
Hudson Bay
1.50
Contribution
Margin
per Hour
$30
42
1.50
28
.25
24
(2
)
9,000 hour
s
31,000 hour
s
(3
)
40,000 hour
s
15,000 hour
s
16,000 hour
s
16,000 hour
s
-0-
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
4
.
Minimum acceptable
transfer price
additional
outlay
=
costs
incurred
because
goods are
transferred
= $70 + $36
opportunit
y cost to
+
the
organizatio
n because
of the
transfer
= $106
McGraw-Hill/Irwin
Inc.
13-66
5.
$145.00
5.50
$150.50
(4.50)
(34.00)
$112.00
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
McGraw-Hill/Irwin
Inc.
13-68
ISSUE 13-54
AT&T MEETS ANALYSTS, BOOSTS GOALS FOR REVENUE, BUT
STOCK DOESN'T RESPOND," THE WALL STREET JOURNAL,
DECEMBER 7, 1999, REBECCA BLUMENSTEIN AND NICOLE
HARRIS.
AT&T intends to provide local phone service nationwide. The
company will serve customers it cannot reach through its
cable holdings or cable joint ventures.
ISSUE 13-55
HARVARD UNIVERSITY -- SOROS SUIT BRINGS RUSSIAN
BANKRUPTCY FIGHT TO U.S. COURT," THE WALL STREET
JOURNAL, NOVEMBER 23, 1999, STEVE LIESMAN.
Tyumen Oil allegedly used transfer-pricing methods to
divert oil revenue from the subsidiaries. The investors say
oil was sold cheaply to buyers related to Tyumen Oil, which
then sold the crude at world prices but failed to revert the
profits to the Sidanco units.
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e
ISSUE 13-56
COOPERATION OR COMPETITION,"
FEBRUARY 2000, DAN HILL.
STRATEGIC
FINANCE,
Focus:
a. Employee rewards based on overall company results
b. Employee rewards not based on local merits
2.
creation
performance
3.
Ability to succeed:
a.
ISSUE 13-57
EXECUTIVE PAY," BUSINESS WEEK, APRIL 21, 1997, JENNIFER
REINGOLD.
1. Management performance can be linked to financial
and nonfinancial measures. Financial factors, such as
earnings-per-share (EPS), profit, return on assets (ROA)
and return on sales (ROS), could be used to assess
management performance. Compensation packages could
then be based on items other than share price.
McGraw-Hill/Irwin
Inc.
13-70
McGraw-Hill/Irwin
Inc.
Managerial Accounting, 5/e