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andreyandreev [35.5K]

2 years ago

15

The COB Division of Northern Corp. produces and sells a product to both external customers and other Northern divisions. Per-uni

t data collected from COB's operations include: Outside sales price $800 Direct materials 350 Direct labour 75 Fixed overhead 180 If COB has excess capacity available to fulfill an inter-company order, what transfer price should be set

1 answer:

svetoff [14.1K]2 years ago

8 0

Answer:

$425

Explanation:

Data provided as per the question

Direct material = $350

Direct labor = $75

The computation of transfer price should be set is shown below:-

Transfer price should be = Direct materials + Direct labor

= $350 + $75

= $425

Note :- The minimum transfer price shall be "Variable Rate" if there is an excess capacity to produce for internal transfer.

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1046.01-1027.28A 3.25 percent Treasury bond is quoted at a price of 99.04. The bond pays interest semiannually. What is the curr

katen-ka-za [31]

Answer:

3.28%

Explanation:

Current yield = Annual Coupon payment / Market price of the bond

Annual Coupon payment = 3.25% of face value = 3.25% * $100

= $3.25 "value is assumed at $100"

Market price of the bond = $99.04

Therefore , Current yield = $3.25 / $99.04

= 0.03281

= 3.28%

4 0

2 years ago

Suppose that the duopolists Carl and Simon face an inverse demand function for pumpkins of P = 400 - Q, where Q = Qs + Qc is the

Usimov [2.4K]

Answer:

the Cournot-Nash equilibrium, Simon's production is 82 units

Explanation:

The Cournot-Nash Equilibrium for Simon's production is calculated as follows:

$P = 400 - Q \\ \\ Q = Q_s + Q_c$

Reaction function of Carl is as follows:

Carl maximize profit at $HR_c = HC_c$

$TR_c = P*Q_c$

$TR_c = (400 -Q_s -Q_c)Q_c$

$TR_c = 400Q_c -Q_sQ_c -Q_c^2$

⇒ $HR_c = \delta TR_c/ \delta Q_c$

$HR_c =400 -Q_s -2 Q_c$

$C_c = 30 Q_c + Q_c^2$

⇒ $HC_c = \delta C_c/ \delta Q_c$

$HC_c =30+2Q_c$

Set $HR_c = HC_c$

$400 - Q_s - 2 Q_c = 30 - 2Q_c \\ \\ 400 - Q_s -30 = 2Q_c + 2Q_c \\\\(370 Q_s) = 4 Q_c \\ \\ Q_c = (370-Q_s)/4 \\ \\ Q_c = 92.5 - 0.25 Q_s \to Reaction \ function \ of \ Carl --- equation (1)$

Reaction function of Simon

Since Simon maximize profit at $HR_s = HC_s$

$TR_s = PQ_s \\ \\ TR_s = (400-Q_c -Q_s)Q_s \\ \\ TR_s = 400 Q_s - Q_cQ_s - Q_s^2$

$HR_s = \delta TR_s/ \delta Q_s$

$HR_s =400 - Q_c -2Q_s$

$C_s = Q_s^2$

$HC_s= \delta C_s/ \delta Q_s$

$HC_s=2Q_s$

Set $HR_s = HC_s$

$400- Q_c - 2Q_s = 2Q_s \\ \\ 400 - Q_c = 2Q_s+2Q_s \\ \\ 4Q_s = 400 - Q_c \\ \\ Q_s = (4000- Q_c)/4 \\ \\ Q_s = 100 -0.25 Q_c --- Reaction \ function \ of \ Simon \ -- equation (2)$

Substituting equation (1) into equation (2)

$Q_s =100 -0.25Q_c \\ \\ Q_s = 100 - 0.25(92.5-0.25 Q_s) \\ \\ Q_s = 100 -23.125 +0.0625Q_s \\ \\ (Q_s-0.0625Q_s) = 76.375 \\ \\ 0.9375 Q_s = 76.875 \\ \\ Q_s = 76.375/0.9375 \\ \\ Q_s = 82$

Thus; the Cournot-Nash equilibrium, Simon's production is 82 units

3 0

2 years ago

The Bankruptcy Abuse and Prevention and Consumer Protection Act limited the number of debtors who could declare which type of ba

kykrilka [37]

I believe the answer is: Chapter 7

Chapter 7 of the bankruptcy law that regulate liquidation process. (when we sold our assets in order to pay our liabilities to the debtors). This would regulate the things that can and cannot be confistcated by the debtors. The cahapter 7 is commonly used by people with limited income.

5 0

2 years ago

Read 2 more answers

Wood County Hospital consumes 500 boxes of bandages per week. The price of bandages is $70 per box. The hospital operates 52 wee

mars1129 [50]

Answer:

545 boxes

Explanation:

Data provided in the question:

Number of boxes consumed per week = 500

Price of bandage per box = $70

Total operating weeks = 52

cost of processing an order, S = $60

cost of holding one box for a year, H = 15% of value of box

= 0.15 × $70

= $10.5

Now,

Annual demand, D = 52 × 500 = 26000 boxes

Economic order quantity = $\sqrt{\frac{2DS}{H}}$

on substituting the respective values, we get

Economic order quantity = $\sqrt{\frac{2\times26000\times\$60}{\$10.5}}$

= 545.10 ≈ 545 boxes

4 0

2 years ago

In 2017, a major drug company agreed to give a not-for-profit private college $420,000 to perform testing of a new drug. An adva

Svetach [21]

Answer:

A) $195,000.

Explanation:

The conservatism principle states that revenue should be recorded only when you are sure that it will occur.

In this case, the college completed 130 tests during 2017 and the drug company pays them $1,500 per test. The college's revenue = $1,500 per test x 130 tests = $195,000

7 0

2 years ago