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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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Two guys walk into a bar; the third one ducks. If these three men acted independently, and the probability is 0.7 that a person
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Answer:

0.063

Explanation:

Given

Probability of a person to not enter into a bar or ducking   is 0.7

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Substituting the given value, we get

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A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%,
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Explanation:

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President Obama praised Cumberland Farms, a convenience store chain based in Framingham, Massachusetts, for empowering its emplo
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Answer:

A) Communicate regularly about the firm’s progress toward meeting its strategic objectives as well as the threats and weaknesses that pose challenges.

D) Adopt a compensation plan that pays employees more when the company meets its goals.

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