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kirill115 [55]
3 years ago
6

Fois Company has two divisions, Division X and Division Y. Division X has a production capacity of 5,000 units of a particular p

art per month. Division X sells 4,400 units of the part each month to outside customers at a contribution margin of $56 per unit. Division Y would like to buy 800 units of the part each month from Division X. In computing the lowest acceptable transfer price from the perspective of the selling division, the lost contribution margin per unit portion of the transfer price computation would be:
Business
1 answer:
kogti [31]3 years ago
8 0

Answer:

Lost contribution per unit = $56 per unit

Explanation:

The Division X is operating at less than full capacity, hence it has excess capacity   of  600 units i.e (5000- 4,400)

This implies that it can only produce to meet the external and a portion of  Division Y demand  

Since Division X can only accommodate a portion of the internal demand, an opportunity would arise if it decides to meet all the request of Division Y.

Therefore, the minimum transfer price

minimum transfer price= Variable cost + a lost contribution from internal supply

The lost contribution represent the amount Division X would have made had sold the units to external buyers

Lost contribution per unit = $56 per unit

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Answer:

Audit

<h3>What is an audit defined as?</h3>
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7 0
1 year ago
Elway Company purchases land for $85,000 cash. Elway assumes $2,500 in property taxes due on the land. The title and attorney fe
defon

Answer:

c. $90,700

Explanation:

The computation of the cost of the land is shown below:

= Purchase cost of land + property taxes + attorney fees + land graded cost

= $85,000 + $2,500 + $1,000 + $2,200

= $90,700

We added the property taxes, attorney fees, and the land graded cost to the purchase cost of the land. We do not include the parking lot expenses

3 0
3 years ago
What refers to the practices aimed at discovering and harnessing an organizations intellectual resources?
Alla [95]

Answer: Knowledge management

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Knowledge management brings improved performance, innovation and competitive advantage to the organisation.

4 0
2 years ago
Who is authorized to give legal advice to a client?
saveliy_v [14]
I believe it's a lawyer. 
3 0
3 years ago
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taurus [48]

Answer:

C

Explanation:

An unstable government is one that changes hand frequently.

<u>When something is said to be unstable, it means that thing keeps fluctuating from one situation, value, or condition to another. </u>

<em>An unstable government is one in which those at the elms of affairs keep changing at frequent intervals. With each new administrator comes new policies. Hence, there are inconsistencies in policy formulation.</em>

Correct option: C

5 0
2 years ago
Read 2 more answers
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