Option b. income from opeations
IFO is a realized profit from business own operations. The income is generated from running the primary excluding other sources example this exclude selling the property of a manufacturing company.
Alison's business idea of coffee shop in a small city with coffee beans that are fair trade certified, shade grown, and organic is best described with the following degree of competition : Monopolistic competition. (B). The coffee shop will <span>sell products that are differentiated from the product of other coffee shops (because of the special coffee beans). Which means there won't be perfect substitutes. This makes the competition monopolistic. </span>
The right rider for the physician to add is guaranteed future insurability. If the doctor knows for sure that his income will be growing in the future, he can add guaranteed future insurability rider to his disability policy, and this will allow him to purchase additional insurance without trying any medical question as long as he meets the income eligibility.
Answer:
Fillmore Industries
Fillmore's Systems Division
1. Minimum and Maximum Transfer Prices:
PCB Transistor
Minimum transfer
price $12.00 $3.45
Maximum transfer
price $12.09 $3.58
2. Yes. The Transistor Division can meet this price. It can sell at $2.60 (Variable cost plus markup) by eliminating the fixed cost, which is not a relevant cost.
3. A transfer price of $11 reduces the profitability of the Transistor Division while it increases the profitability of the other division. The transfer price should be a market-competitively determined price to encourage efficiency in the divisions.
Explanation:
a) Data and Calculations:
PCB Transistor
Direct materials 1,85 0,40
Direct labor 4,20 0,90
Variable overhead 2,40 0,70
Fixed overhead 0,85 0,75
Total Cost 9,30 2,75
Marked up Price $12.09 $3.58
Minimum transfer
price $12.00 $3.45
Maximum transfer
price $12.09 $3.58
Market price $12.00 $3.45