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HACTEHA [7]
3 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]3 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]3 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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onghorn Fabricators Inc. plans to expand its metals-forming facility over the next 5 years. The company will add 20,000 square f
Ann [662]

Answer:

Future value of total improvement cost = $1,788,552.44

Explanation:

As per the data given in the question,

Regular deposit amount = $250,000

No. of period = 5 years

Interest rate = 18%

Future value = Regular deposit amount × [((1+interest rate per period)^no. of period - 1) ÷ interest rate per period]

Face value = $250,000×[((1+0.18)^5-1) ÷ 0.18]

= $250,000×7.154

= $1,788,552.44

Future value of total improvement cost = $1,788,552.44

7 0
3 years ago
Lana's team has been given a group writing assignment. the deadline is two months away. when should the group start working on t
WINSTONCH [101]
Well in this situation the wisest thing to do is to start with your project as soon as possible, start preparing for it and gather all the materials needed in time for the project.


3 0
3 years ago
Read 2 more answers
The fundamental attribution error:______ a. advantages non-dominant group members while disadvantaging dominant group members. b
guapka [62]

Answer:

Option B      

Explanation:

In simple words, The fundamental mistake throughout the attribution refers to the propensity for individuals to overemphasise personal attributes and neglect environmental variables in evaluating actions of others.

For instance, in one experiment whenever something unpleasant occurred to somebody else, participants blamed the actions or attitude of that individual 65 per cent of the total times. Thus, from the above we can conclude that the correct option is B.

3 0
2 years ago
If a firm’s expenses equal or exceed its revenue, what actions might management take?
exis [7]

In a case whereby firm’s expenses equal or exceed its revenue, the actions that might be taken by management is To check their production process and check the cost of their input.

<h3>What are expenses?</h3>

This are the cost of inputs that the company put into production of their goods and services.

When expense is higher than revenue then the organization is running at loss, but when the revenue equal to the expenses, there is no Gain.

Therefore, the actions that might be taken by management is to check their production process .

Learn more about expenses at:

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7 0
2 years ago
What is authorize share​
kap26 [50]

Answer:

Explanation:

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3 0
3 years ago
Read 2 more answers
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