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ra1l [238]
3 years ago
6

The Rubber Division of Morgan Company manufactures rubber moldings and sells them externally for $50. Its variable cost is $20 p

er unit, and its fixed cost per unit is $7. Morgan's president wants the Rubber Division to transfer 5,000 units to another company division at a price of $27.
Assuming the Rubber Division has available capacity of 5,000 units, the minimum transfer price it should accept is

a. $7.
b. $20.
c. $27.
d. $50.
Business
1 answer:
Musya8 [376]3 years ago
4 0

Answer:

b) $20

Explanation:

The minimum acceptable price per unit is $20.

This is because the minimum acceptable price is the break even price for the division. We will not include $7 fixed cost because it is not relevant to this transaction as it has to be paid regardless of this transfer.

The Minimum price thus is the price that cancels out all relevant costs namely the variable costs of $20.

Relevant costs are also known as the incremental costs that are incurred only when a particular activity is undertaken. Fixed costs as such are not incremental. Since there is spare capacity we are not forgoing any profits from external exchanges that needs to be accounted for.

Hope this helps

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For Questions 15 - 18 You purchased 200 shares of ABC stock on July 15th. On July 20th, you sold 100 shares and then on July 22n
shusha [124]

Answer:

100 shares

Explanation:

The computation of the number of shares for which the dividend is received that purchased on July 15 is shown below:

Since it is given that 200 shares are purchased on July 15 and on July 20, 100 shares are sold and on July 22, the final 200 shares are purchased

So in the given case, the number of shares for which the dividend is received is of 100 shares as the same shares is purchased on July 15 and their record date of the dividend is on July 22

6 0
4 years ago
A monopolist Select one: a. can raise its price without losing any sales because it is the only supplier in the market. b. can e
Semenov [28]

Answer:

The correct answer is option b.

Explanation:

A monopolist is the only firm in its market. It is the price maker and faces a downward-sloping demand curve. There is a restriction on the entry of new firms. So the monopolist can earn more than normal profit in both short-run as well as long run. The other firms can not join the market because of barriers to entry. So unlike a perfectly competitive firm, the monopolist will continue to earn super normal profits in the long run as well.

7 0
4 years ago
Two hundred people were asked if they had read a book in the last month. The accompanying contingency table, cross-classified by
Rainbow [258]

<em>Question Continuation</em>

<em>The probability that a respondent read a book in the last month and is at least 30 years old is the closest to </em>

<em> A. 0.33 </em>

<em> B. 0.88 </em>

<em> C. 0.46 </em>

<em> D. 0.12 </em>

<em>See Attachment for complete question </em>

Answer:

A. 0.33

Explanation:

To solve this question, we need the intersecting cell of Yes and 30+

n(Yes\ n\ 30+) = 65

The probability is then calculated as follows:

P(Yes\ n\ 30+) = \frac{n(Yes\ n\ 30+)}{Total}

Where Total = 200

P(Yes\ n\ 30+) = \frac{65}{200}

P(Yes\ n\ 30+) = 0.325

From the list of given options; (A) is the closest to 0.325

Hence:

<em>Option A answers the question</em>

3 0
4 years ago
Clark wanted his workers to work for twelve hours every day instead of the eight hours they were supposed to. The workers were n
djyliett [7]

Answer:

a. soldiering

Explanation:

According to my research on scientific management studies, I can say that based on the information provided within the question this behavior of the workers is known as soldiering. This term is when a group of workers pressure each other to maintain the work-flow and productivity low, since if productivity is maintained low then the wages would stay up.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
3 years ago
Vanessa owns a music company and has been storing a wealth of information ranging from customer contact information to the names
Keith_Richards [23]

Interactivity  of a marketing decision support system is represented in the given example.

<u> Explanation :</u>

While analysing the market demands, they need a system which can produce data in an interactive way. This kind of system only helps the above mentioned type of company.

Actually to support her business venture she has implemented the MDSS that is marketing decision support system. This is a computerised support system where it stores all the customers’ data and areas of interest of the customers and it also tracks the purchases they have made.

To analyse the future requirement and to satisfy the customer demands the MDSS has an interactive way of obtaining information to fulfil the company’s aspiration.

6 0
3 years ago
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