The answer I think it is ,is (B.)
Answer:
(a) $33750000 (b) $11250000 (c) $22500000
Explanation:
Solution
(a) How much would Ziegler Inc. total income of operating increase.
Now,
Units * (Cost of purchased from outside supplier - Variable cost)
Thus,
75000 * ($1350 - $900) = $33750000
(b) How much would the Instrument Division's operating income increase
Now,
The Units * (Cost of purchased from outside supplier - Transfer Price)
So,
75000 units * ($1350 - $1200) = $11250000
(C) How much would the Components Division's operating income increase?
Now,
Units * (Transfer Price - Variable cost)
75000 units * ($1200 - $900) = $22500000
Answer:
The ammount due at the end of the loan adds for $27,456
Explanation:
If the payment is in full at maturity, the man must pay the principal of 26,000 plus the interest during the period of 4 years.
It is important to notice that the loan is done at simple interest, so the interest does not capitalize.
Answer:
77.48 units
Explanation:
Data provided in the questions
Annual demand = 395 units
Ordering cost = $38
Holding cost per unit per year = $5
The computation of the economic order quantity is shown below:
= 77.48 units
hence, the economic order quantity is 77.48 units
We simply applied the above formula so that approximate units could come. And it always expressed in units
Answer:
Normal good
Explanation:
Income effect Is change in quantity demanded when the consumers purchasing power change as a result of a change in real income.
Substitution effect is when quantity demanded falls as a result of rise in price of a good which leads consumers to purchase cheaper alternatives.
A normal good is a good whose demand increases as income increases.
If the price of a normal good falls, the real purchasing power of the consumer increases and the consumer buys more of the good. Also, the consumer substituites from more expensive alternative goods to the more cheap normal good. The income and substitution effect both move in the same direction.
