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Nata [24]
3 years ago
11

Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can

be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $3.10, shipping cost is $0.21, and the external sales price is $4.10. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for $3.70. The Bottle Division has sufficient capacity to meet all external market demands in addition to meeting the demands of the Cologne Division. Using the general rule, the transfer price from the Bottle Division to the Cologne Division would be:
Business
1 answer:
ale4655 [162]3 years ago
5 0

Answer:

transfer price 3.31

Explanation:

the minimun transfer price should be equal to the marginal cost:

In this case: variable manufacturing cost + shipping cost.

variable cost 3.1

shipping cos 0.21

marginal price 3.31 = cost of produce an additional unit = transfer price

there is no additional fixed cost so this should be the transfer price.

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Answer:

Other things equal, the fall in the price of plastic would shift Pic's marginal cost curve to the right. To maximize profits, Pic should increase its output. Since other firms in the industry do not enjoy the reduction in marginal costs, the market supply curve would not change and the market price of toothpicks would remain unchanged. Pic Industries would enjoy higher profits in the short-run

4 0
2 years ago
you are the owner of a beauty salon. give two examples of opportunities and threats your business may face and motivate your ans
Anna11 [10]
1. Another beauty salon opening up across the street that offers lower prices. They would steal away any customers you have that aren't loyal to your business alone.
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3 years ago
Capital One is advertising a 60-month, 5.99% APR motorcycle loan. If you need to borrow$8000 to purchase your dream Harley David
spayn [35]

Answer:

R=154.66941

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6 0
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ipn [44]

Answer:

no one hates you

Explanation:

7 0
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