Answer:
$210,000
Explanation:
The computation of the external price is shown below
Making cost = buying cost
$120,000 + $25,000 + $45,000 + $30,000) = external price + Unavoidable fixed cost (30,000-20,000)
$220,000 = External price + $10,000
So,
External price = 210,000
Hence, the same is to be considered
Therefore the external price is $210,000
Answer:
Sale of plant assets. If the company<u> sales an equipment it will receive cash </u>for it. We are not given with any information of this transaction not being in cash, so we should assume it was a sale in cash or cash equivalent.
Explanation:
<u>Conversion of bonds into common stock.</u> The bonds, which are outstanding and represent a promise to pay, are converted into common stock, this transaction doesn't involve cash.
<u>Issuance of common stock to purchase land. </u>The land is acquire in exchange of common stock, the company is not using cash. the owner of the land can later sold the stock to a third party but it won't affect the cash flow of the company.
<u>Issuance of debt to purchase equipment </u>Like singing a note to purchase a machine, no cash is involve.
Answer:
yes
Explanation:
because in order for everything to be organized you need to know how the system is running
Answer:
it will be a net loss of 560,000
It is better to produce at a loss of 60,000 than a loss of 620,000
That's because, the Division cover a good portion of their allocate fixed cost.
Explanation:
The fixed expense are allocate cost. Are unavoidable cost It will remain even if the division is dropped.
The sales and variable cost will be zero.
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After posting the values, we calculate the differential income.
In this case it will be a loss for 560,000