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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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False

Explanation:

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3 years ago
History of Stock Exchange in India
fomenos

Answer:

The first organised stock exchange in India was started in 1875 at Bombay and it is stated to be the oldest in Asia. In 1894 the Ahmedabad Stock Exchange was started to facilitate dealings in the shares of textile mills there. The Calcutta stock exchange was started in 1908 to provide a market for shares of plantations and jute mills.

Then the madras stock exchange was started in 1920. At present there are 24 stock exchanges in the country, 21 of them being regional ones with allotted areas. Two others set up in the reform era, viz., the National Stock Exchange (NSE) and Over the Counter Exchange of India (OICEI), have mandate to have nation-wise trading.

They are located at Ahmedabad, Vadodara, Bangalore, Bhubaneswar, Mumbai, Kolkata, Kochi, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur’ Kanpur, Ludhiana, Chennai Mangalore, Meerut, Patna, Pune, Rajkot.

The Stock Exchanges are being administered by their governing boards and executive chiefs. Policies relating to their regulation and control are laid down by the Ministry of Finance. Government also Constituted Securities and Exchange Board of India (SEBI) in April 1988 for orderly development and regulation of securities industry and stock exchanges.

5 0
2 years ago
At September 1, 2018, Swifty Co. reported stockholders’ equity of $156000. During the month, Swifty generated revenues of $37400
kenny6666 [7]

Answer:

$171,360

Explanation:

Given that,

At September 1, 2018, Swifty Co. reported stockholders’ equity = $156,000

Revenues = $37,400

Expenses = $20,000

Purchased equipment = $4,920

Paid dividends = $2,040

Net income:

= Revenues - Expenses

= $37,400 - $20,000

= $17,400

Stockholders’ equity at September 30, 2018:

= Beginning balance + Net income - Dividend paid

= $156,000 + $17,400 - $2,040

= $171,360

Therefore, the amount of stockholders’ equity at September 30, 2018 is $171,360.

4 0
3 years ago
Which of the following modes of transportation would probably be the most energy efficient for traveling from New York to Los An
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D because many people are travelling together and the train can occasionally coast due to level travel and the greater the mass the more often the momentum
5 0
3 years ago
(Ignore income taxes in this problem.) Clairmont Corporation is considering the purchase of a machine that would cost $150,000 a
djverab [1.8K]

Answer:

a) $133,385 

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator:

Present value each year from year 1 to 5 = $37,000

I = 12%

NPV = $133,385 

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

4 0
3 years ago
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