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When you purchase an item in a store you may be charged by Sales tax. It is <span>a tax on sales or on the receipts from sales.</span>
There must be a<u> cordial relationship</u> and trust between two manufacturers in a business ecosystem working towards developing a new product for consumers.
<h3>What is a Business Ecosystem?</h3>
A business ecosystem is a deliberate commercial arrangement involving two or more organizations to develop and share a common value for consumers.
Every business ecosystem contains participants, and at least one of them serves as the controller. There must be a<u> cordial relationship</u> and trust between two manufacturers in a business ecosystem working towards developing a new product for consumers.
The primary advantage of adopting business ecosystems is to be better positioned, promote innovation, and maximize capital efficiency in order to produce customer value.
Learn more about Business Ecosystem here:
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Based on the sales revenue and the net accounts receivable, the receivables turnover ratio is 12 times .
<h3>What is the receivables turnover ratio?</h3>
This can be found as:
= Net sales revenue / Average accounts receivable
Solving give:
= 720,000 / (62,000 + 58,000) / 2
= 720,000 / 60,000
= 12 times
Find out more on receivables turnover ratio at brainly.com/question/27523896.
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Answer:
a. $11
b. $35
c. If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.
Explanation:
The minimum acceptable price is the price that is acceptable to the transferring division and out of a range of acceptable prices, it is that which would be the best for the company.
When there is excess capacity.
Note : No opportunity costs would exist.
Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost
= $11
When there is excess capacity.
Note : Opportunity costs would exist.
Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost
= $11 + ($35 - $11 )
= $35
Why Capacity of transferring division (Small Motor Division) has an effect on the transfer price.
If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.
