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UkoKoshka [18]
3 years ago
7

The fungal division needs 10,000 plates of potato dextrose agar annually. Currently, the fungal division purchases them from Ari

zona Lab Supplies for $25.00 for a unit of 10 plates because the media division has no excess capacity. However, recently the media division has lost a major customer and now has the capacity to provide the plates. What would be the minimum transfer price per sleeve of 10 plates?
Business
1 answer:
guapka [62]3 years ago
7 0

Answer: Greater than or equal to $25

Explanation:

Transfer price is the price at which products are sold between different departments of a firm.

The need for transfer price is borne out of the fact that some departments finished products are the raw materials for another

There is also the need for effective evaluation of the departments as a separate units .

Some Frm's usually gives there departments permission to sell at the prevailing market price considering the fact this is lowest price the buying department will be able to obtain it in the market.

In the example above the fungal division will only be able to obtain the product at the current market price of $25 which is the basis for this answer.

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Frederickson Office Supplies recently reported $10,000 of sales, $7,250 of operating costs other than depreciation, and $1,250 o
stich3 [128]

Answer:

c. $900

Explanation:

The computation of the earnings before taxes (EBT) is shown below:

= Sales - operating costs other than depreciation - depreciation expense - outstanding bonds × interest rate

= $10,000 - $7,250 - $1,250 - $8,000 × 7.5%

= $10,000 - $7,250 - $1,250 - $600

= $900

We ignored the state income tax rate of 25% and the rest of the items would be taken for the computation part

6 0
3 years ago
A quality inspector took five samples, each with 4 observations, of the length of time for glue to dry. The analyst computed the
ratelena [41]

Answer:

12.57

Explanation:

The first part is correct with the answer of 12.57. The formula is x_bar_bar + 3*sigma/sqrt(n)

Here x_bar_bar = 12.51, sigma = 0.04, n = 4.

Thus UCL = 12.51 + 3*0.04/sqrt(4) = 12.57

6 0
3 years ago
"Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $460,000. In addition to the purchase price, FVI makes the follow
Artyom0805 [142]

Answer:

Cost of land = $519,000

Explanation:

<em>According to  International Accounting Standards (IAS)  16, property plants and equipments, the cost of land includes all of the cost necessary to bring and make it ready for the intended use. </em>

<em>These costs include purchase cost, fees and commission associated with the purchase transaction. </em>

<em>Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.</em>

Note that all the costs incurred by FVI as reported all fall into the above definition of  cost of land.

Therefore the cost of the land would  be

=460,000 + 26,000 + 1,600+ 5,400 + 26,000

= $519,000

5 0
3 years ago
Nemesis, Inc., has 215,000 shares of stock outstanding. Each share is worth $81, so the company's market value of equity is $17,
Ksivusya [100]

Answer:

$81, $75, and $69

a. Market value of existing shares = 215000 * $81 = $17415000

   Value of New shares issued = 48000 * $81 =        <u>$3888000</u>

                                                                                     <u>$21,303,000</u>

Price after issue of new shares = 21,303,000 / (215000 + 48000)

= 21,303,000 / 263,000

= $81

Conclusion: No changes ($0 per share

b. Market value of existing shares = 215000 * $81 = $17415000

   Value of New shares issued = 48000 * $75 =        <u>$3600000</u>

                                                                                     <u>$21015000</u>

Price after issue of new shares = 21015000 / (215000 + 48000)

= 21,015,000  / 263,000

= $79.90

Conclusion: There is a decrease in amount (81 - 79.90) = $1.10 per share

c. Market value of existing shares = 215000 * $81 = $17415000

   Value of New shares issued = 48000 * $69 =        <u>$3312000</u>

                                                                                     <u>$20,727,000</u>

Price after issue of new shares = 20,727,000 / (215000 + 48000)

= 20,727,000 / 263,000

= $78.81

Conclusion: There is a decrease in amount (81 - 78.81) = $2.19 Per share

4 0
3 years ago
At​ Rudi's Bakery sales staff must travel the country meeting with their distributors. The best kind of meeting to have when emp
Pie

Answer:

Virtual

Explanation:

When participants of a prearranged meeting are in different locations,  virtual meeting is most appropriate.

A virtual meeting is conducted over the internet through video calls.  It can also happen through telephone links or other audio channels. Virtual meeting allows the sharing of information on a real-time basis by people who are in different locations.  For example, Microsoft's Skype, which is a video-teleconference software, can be used yo conduct meetings or interviews by people in different places.

A virtual meeting is the best option for Rudi bakery.  Communication in a virtual meeting is two way. All participants can contribute actively by asking or responding to queries of on the spot.

8 0
3 years ago
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