Answer: $4
Explanation:
The Bottle division is said to be able to meet all excess demand outside as well as that of the Cologne Division.
When this is the case in a company, individual divisions are allowed to transfer to each other at a rate equal to their Variable Costs. This is the general rule.
The Variable Costs for the containers is $4 so that is the transfer price as well.
Answer:
C. What you earn on this security would not change as a result of the change in interest rates.
Explanation:
The increase in the interest rate will decrease the price of the T-Bill if you want to sell it to another investor, but what you will earn with the security will not change at all. Your earnings in dollars = interest rate paid by the T-Bill or any other type of bond.
If you buy and sell securities for a living, then a change in the interest rates can make you win or lose money, since the price of the securities will increase or decrease. If interest rates increase, the price decreases. But if you invest on a security to earn the coupon or interest rate that it pays, a change in the price will not affect you because you already own it. The opportunity cost of holding the security might change, but the accounting revenues will not.
Answer:
All the options might convince to an employer to choose a nonqualified retirement plan over a quialified plan.
en A). the owner of the corporation would use a nonqualified plan because the income tax rate of the business is lower than the owner´s tax rate.
B) Is a true statement. as nonqualified plans are typycally only stablised to benefit the executive and there are no requirements to benefit thr rank and file
C)
would cause an employer to choose a nonqualified plan because a nonqualified plan requires less administrative costs than a profit sharing plan
