Answer:
Option C. $0.11
Option D. $0.95
Explanation:
As we know that the Transfer Price is set at either selling price for an outside market or variable cost plus opportunity cost if the product sold is to internal market present within the organization (Inter group or inter division sales).
However, the division can still charge upper limit price to the division which is $1 market price of the product.
Upper limit = $1
As it is given that the selling of the additional units will be among divisions which means its inter division market. Hence the lower limit will be used here.
Lower Limit = Variable cost + opportunity cost
Here
Variable cost is $10 cents
And
Opportunity cost will be zero here as the division will be using its excess capacity to sell to the other division, so there is no opportunity cost.
So, by putting values, we have:
Lower Limit = $0.1 - $0 = $0.1
Upper limit = $1
Thus the transfer price set for each bell can be between $1 and $0.1. So the $0.11 and $0.95 falls between these range and both are correct options here.
Answer:
<u>Therefore, the lease liability is $533,600 and the current liability is $46,640.
</u>
Explanation:
In pursing its own interest, an oligopoly firm will decide to increase production by 1 unit as long as the output effect is larger than the price effect. An oligopoly happens when there is limited competition because there are only a small number of producers or sellers in the market. Due to limited competition there is no need for most of these businesses to produce more unless the output is going to produce more and become sustainable for their consumers demand.
Answer:
<h3>An example of a Real Account is a Bank Account. A Personal account is a General ledger account connected to all persons like individuals, firms and associations. ... A Nominal account is a General ledger account pertaining to all income, expenses, losses and gains. An example of a Nominal Account is an Interest Account</h3>
A company that makes a consumer product such as laundry detergent asks customers to write a positive review about the product in exchange for a small chance of winning a $1 discount coupon.<u>The cognitive dissonance theory predict that the attitude of the customer toward the product will become Positive</u>
Explanation:
Cognitive dissonance theory talks about a state of an individuals mind in which their exist a conflict between the attitudes, beliefs or behavior of an individual,which produces a feeling of mental stress.
As per the cognitive dissonance theory Whenever there is an disharmony between our attitudes or behavior , we should make effort to eliminate the dissonance.
In the above question the company has made an effort to remove the dissonance among its customers by giving them a small chance of winning a $1 discount coupon.Thus resulting in a positive change in the attitude of the customer.
