1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
8090 [49]
2 years ago
11

Darrin’s Auto Northern Division is currently purchasing a part from an outside supplier. The company's Southern Division, which

has no excess capacity, makes and sells this part for external customers at a variable cost of $15 and a selling price of $27. If Southern begins sales to Northern, it (1) will use the general transfer-pricing rule and (2) will be able to reduce variable cost on internal transfers by $3. On the basis of this information, Southern would establish a transfer price of:
Business
1 answer:
Marina86 [1]2 years ago
5 0

Answer:

Transfer price = $24

Explanation:

As per the data given in the question,

The excess capacity of Company's Southern division is nill therefore for transferring the units the division will have to decrease its external sales.The Loss occurred due to reduction in external sales should be from inter divisional transfer price. Therefore,

Transfer price = variable cost + Loss of contribution

= ($15 - $3) + ($27 - $15)

= $24

You might be interested in
Which of the following queries can have a Fully Meets result?
ANEK [815]

Answer:

The right answer for the question that is being asked and shown above is that: "true/false [adobe]; English (US) True/false [new york times online]; English (US) True/false [hawaiian phototographers]." These are the following queries that can have fully meet resulT

MARK ME BRAINLIEST!

Explanation:

3 0
3 years ago
Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growt
mr_godi [17]

Answer:

$69.47

Explanation:

D1 = ($1.45*1.20) = $1.7

D2 = ($1.7*1.20) = $2.04

D3 = ($2.04*1.20) = $2.45

Value after year 3 = (D3*Growth Rate) / (Required rate-Growth Rate)

Value after year 3 = ($2.45*1.08) / 0.11-0.08

Value after year 3 = $2.646 / 0.03

Value after year 3 = $88.20

Current share price = Future dividend and value*Present value of discounting factor(rate%,time)

Current share price = $1.7/1.11 + $2.04/(1.11)^2 + $2.45/(1.11)^3 + $88.20/(1.11)^3

Current share price = $1.5315315 + $1.65571 + $1.7914189 + $64.49107

Current share price = $69.4697304

Current share price = $69.47

8 0
2 years ago
Lowering the discount rate can promote full employment because
Keith_Richards [23]
Lowering the discount rate can promote full employment because <span>companies are more likely to expand and hire more workers. High inflation is the circumstance which usually accompanies a period of economic expansion. </span>
7 0
2 years ago
Which of the following statements about the graph are true? Select all that apply.
MrMuchimi

Answer:

Explanation:

Tanya

8 0
3 years ago
8. most security threats come from inside an organization. (points : 2) true false
topjm [15]
True. Because they have access to the defense.
4 0
3 years ago
Read 2 more answers
Other questions:
  • ​GEICO, the​ number-two auto insurer with ​$15 billion in revenue last​ year, spent ​$0.8 billion on advertising that year and p
    8·1 answer
  • Excerpts from Huckabee Company's December 31, 2018 and 2017, financial statements are presented below: 2018 2017 Accounts receiv
    7·1 answer
  • The primary goal of the consumer financial protection bureau is everfi answer
    8·1 answer
  • When buying component parts, risk does not include:?
    6·1 answer
  • Multiple Product Performance Report Storage Products manufactures two models of DVD storage cases: regular and deluxe. Presented
    10·1 answer
  • The two factors that determine the costs of manufacturing inputs (materials, labor, and overhead) are price and quantity.
    13·1 answer
  • What does the World Bank hope will result from the loans it makes to developing countries?
    9·2 answers
  • If interest rates are at the zero lower bound:A. the effectiveness of monetary policy increases. B. monetary policy is not very
    5·1 answer
  • Skysong, Inc. reported net income of $194,500 for 2020. Skysong also reported depreciation expense of $47,500 and a loss of $6,2
    15·1 answer
  • Iowa enacts a law that restricts certain kinds of advertising to protect consumers from being misled. This law would likely be h
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!