Answer:
$69,000
Explanation:
The computation of the operating income would be shown below:
= Buying cost - making cost
where,
Buying cost equals to
= 60,000 × $3
= $180,000
And, the making cost would be
= Variable cost + fixed cost × avoid percentage
= $90,000 + $70,000 × 30%
= $90,000 + $21,000
= $111,000
Now put these values to the above formula
So, the value would equal to
= $180,000 - $111,000
= $69,000
Answer:
c
Explanation:
not sure but I tried may best tho
Answer:
$120 per unit
Explanation:
The computation of minimum acceptable transfer price is shown below:-
If the division of the transferor does not have spare capacity, the minimum transfer price is equal to variable cost per unit and the contribution margin per unit
Minimum transfer price = Variable cost per unit + (Selling price to outside customers - Variable cost per unit)
= $72 + ($120 - $72)
= $72 + $48
= $120 per unit
Therefore for computing the minimum transfer price we simply applied the above formula.
1. Accept “no” for an answer.
2. Be direct and straightforward.
3. Avoid guilt.
4. Be direct and polite.
5. Don’t cross the line, avoid “asking too much”.
Sorry I’m not really sure of the answer
