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HACTEHA [7]
2 years ago
12

Materials used by Jefferson Company in producing Division C's product are currently purchased from outside suppliers at a cost o

f $10.00 per unit. However, the same materials are available with Division A. Division A has unused capacity and can produce the materials needed by Division C at a variable cost of $8.50 per unit. A transfer price of $9.50 per unit is negotiated and 25,000 units of material are transferred, with no reduction in Division A's current sales. How much will Division A's income from operations increase? a. $50,000 b. $25,000 c. $0 d. $75,000
Business
2 answers:
My name is Ann [436]2 years ago
5 0

Answer:

b.25,000

Explanation:

Saving cost per unit = Transfer price per unit - variable cost per unit

                                 = $9.50 - $8.50

                                 = $1.00 per unit

Thus, saving cost per unit is $1.00 per unit

Now multiply this saving cost per unit with transferred units to interpret how much amount is increased

= $1.00 × 25,000 units

= $25,000

The supplier cost is irrelevant for computation.

AVprozaik [17]2 years ago
4 0

Answer:

None of the above.

Total Income from operation increase.  12,500.00

Explanation:

  • Purchase cost from outside

$          10.00 Per unit

  • Inter transfer purchase from Division A

$            9.50 Per unit

  • Saving Per unit

$            0.50 Per unit

  • Number of units purchased from Division A

25.000 Units

Total Income from operation increases      12,500.00

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Fern motors is offering a rebate on cars purchased this month. this activity involves the ____ ingredient of the marketing mix.
saveliy_v [14]

Answer:

Pricing

Explanation:

4 ingredients of marketing mix are Pricing, Product, Place and Promotion(the 4Ps).

Pricing-  is for determining the value that is put on a product including rebates. Deciding the correct intrinsic value of a product puts a lot of factors into consideration like the target market, the consumer willingness to pay, whether it is sufficient enough for the company to make a profit out of it.

Product - answers the <em>what</em>; the actually good or service being offered for sale.

Place- answers the <em>where; </em>the location of product so customers can buy it.

Promotion- any activities to inform the target market that the product exist, how to use it etc. this includes advertisement, word of mouth among others.

6 0
3 years ago
In 2010 the United States posted a current account deficit of -$471 billion. The bulk of the negative value came from: A. a good
Brut [27]

Answer:

A. a goods trade deficit

Explanation:

The current account represent the trade balance (export less import) plus

the net income (person receiving interest, rent or wages from aboard less person and companies paying foreingers) and

the direct payment. ( remittances from wroker to US)

As the US is one of the most open-economies in the world the mayority of this deficit comes from import of good and services from aboard.

Another factor, is that US company invest around the world thus, the net income should be positive.

And becuase the US economy is strong as opposite of Mexico or other Latin America countries, the average US employee abroard will not send their wages to support his family.

Thus, we should ensure the deficit comes from a negative trade deficit.

6 0
3 years ago
Which of the following are examples of automatic stabilizers? Check all that apply. As corporate profits rise during an economic
hoa [83]

Answer:

As people earn higher incomes during an expansion, the progressive tax system requires them to pay higher average tax rates

Explanation:

Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments

In an expansion, progressive tax increases the tax paid and this reduces disposable income

In a contraction, tax paid is reduced and this increases disposable income

6 0
3 years ago
Inexpensive goods and services, which take very little consideration on the part of consumers and consumers frequently purchase,
nlexa [21]
Its called convenience products
4 0
3 years ago
supposed you invest $500 in a mutual fund today and $600 in one year. if the fund pays 9% annually, how much will you have in tw
Ilya [14]

If the fund pays 9% annually, you will have $1248.05 in two years.

Future value is the value of a product or investment at some point in the future. In other words, the future value is the amount of money that, assuming a specific rate of return, an investment will be worth after a specific period of time.

According to the concept of present value, money is worth more now than it will be later. In other words, money received in the future is not as valuable as money obtained now in the same amount.

A = Future Value

P = Present value

r = Rate of interest

n = Time period

A = P(1+r/100)^n

= 500$\times (1.09)^2$ + 600$\times (1.09)^2$

= $1248.05

To learn more about Future Value

brainly.com/question/19261146

#SPJ4

7 0
1 year ago
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