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I hope this helps.
Answer:
a. $11
b. $35
c. If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.
Explanation:
The minimum acceptable price is the price that is acceptable to the transferring division and out of a range of acceptable prices, it is that which would be the best for the company.
When there is excess capacity.
Note : No opportunity costs would exist.
Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost
= $11
When there is excess capacity.
Note : Opportunity costs would exist.
Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost
= $11 + ($35 - $11 )
= $35
Why Capacity of transferring division (Small Motor Division) has an effect on the transfer price.
If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.
Answer:
C. 7.18%
Explanation:
Formula for calculating growth rate
= (Current amount/initial amount) ^ 1/n - 1
Given that
Initial amount = 15000
Current amount = 60000
n = 20
Therefore,
Growth rate = (60000/15000)^1/20 - 1
= (4)^1/20 - 1
= 1.07177 - 1
= 0.07177
To percentage we multiply by 100
So,
= 0.07177 × 100
= 7.177%
Approximately
= 7.18%
Answer:
By informative communication
Explanation:
In simple words, if any customer has a particular brand in his or her mind while shopping then the best to way to interact with hem is to support their desire and inform them as much as you can for their product. By doing so you indulge them in a mutual relationship and they will be fully engaged in the process. After that one can offer them other products of different brands.
Answer:
A sudden sharp reduction in the availability of money or credit from banks and other lenders.
