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Vlad1618 [11]
3 years ago
9

The Wood Division of Bramble Corp. manufactures rubber moldings and sells them externally for $45. Its variable cost is $25 per

unit, and its fixed cost per unit is $9. Bramble’s president wants the Wood Division to transfer 4500 units to another company division at a price of $26.Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is a.$25.b. $26c. $45d. $9
Business
2 answers:
egoroff_w [7]3 years ago
5 0

Answer:

a.$25.

Explanation:

The cost element of the company is divided into fixed and variable cost. while the fixed cost is unavoidable, the variable cost can be controlled. The transfer price is the price at which an item may be transferred or "sold" internally between to units within an organization.

For a division or unit to transfer a unit to another, the minimum transfer price is the variable cost.

Once the item is transferred at the variable cost, the contribution of that product internally is zero and the receiving division may then sell externally generating the actual sale and profit for the entire business.

Lyrx [107]3 years ago
4 0

Answer:

c. $45

Explanation:

Transfer price is the price charged for a product which is transferred to other department/ division / subsidiary of same company / group. The minimum selling price in the absence of any excess capacity is the price available in the market, because the company has demand for the product and it does not lost the sale if transfer not takes place. The product can be sold in the market. So the Transfer price should be $45.

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The five marketing strategies includes strategies on 5P's which includes Price, Product, Promotion, Place and People.

The retailers are basically people who sells goods in smaller quantity to the final consumer in the chain of distribution.

The five marketing strategies they spend half of their annual budget on includes on the following:

  • Price: The retailers ensures that prices of their product are reduced below cost price to persuade consumers to buy from them.

  • Product: The retailers need to ensure that varieties of product are available in the stores to satisfy the consumers need.

  • Promotion: Various advertisement and others strategy to persuade consumers needs funds to make successful.

  • Place: The store and outlet need to be where is more favorable and comes with high cost of expenses for the retailers.

  • People; The consumers are given discounts and other incentives to persuade them to come and buy more goods from the retailers.

Learn more about this here

<em>brainly.com/question/14443232</em>

4 0
2 years ago
2. If information is disseminated, what happens to it?
Molodets [167]

Answer:

b

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4 0
3 years ago
The quick ratio of a firm with current assets of $300,000, current liabilities of $100,000 and inventory of $100,000 is
butalik [34]

Answer:

2:1

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A firm has a current assets of $300,000

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Charra [1.4K]

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The legal process involved in the establishment of corporation is called incorporation. It contains the main reason why the corporation is in business, name and office address, types and number of shares to be issued.

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