What is business development?

The CEO of Lexington decides to impose a transfer price since the two divisions cannot agree. She chooses the highest feasible p

Sloan [31]

Answer: Not Sound as Company does not benefit as a Whole.

Explanation:

This question alludes to the presence of Divisions in a company tasked with producing different segments of a good.

One Division makes a segment of the good and transfers it for a price to the other division so that they may be able to show Revenue on their books.

The reasoning of the CEO of Lexington is flawed because if she chooses the highest feasible Transfer Fee for the goods it will be good for the Division doing the Transferring because they make more revenue.

However, it will increase the cost of those being transferred to by the same amount that it increase the revenue of the Division transferred from.

As a result, the increase in Cost and the Increase in Revenue in the two divisions will cancel each other out meaning that the company did not benefit.

8 0

3 years ago

At an output level of 58,000 units, you calculate that the degree of operating leverage is 1.6. The output rises to 63,000 units

Scorpion4ik [409]

Answer:

Change in Operating Cash Flow = 13.79 %

Explanation:

given data

output level = 58,000 units

degree of operating leverage = 1.6

output rises = 63,000 units

solution

we get here percentage change in operating cash flow for that

Percentage Change in Output we get

Percentage Change in Output = ( output rises - output level ) ÷ output level .........1

Percentage Change in Output = $\frac{63000-58000}{58000}$

Percentage Change in Output = 0.08620689655

so here Change in Operating Cash Flow will be as

Change in Operating Cash Flow = Percentage Change in Output × degree of operating leverage ............2

Change in Operating Cash Flow = 0.08620689655 × 1.6

Change in Operating Cash Flow = 13.79 %

3 0

4 years ago

If there are five firms in an industry and the market shares of the firms are 45 percent, 22 percent, 17 percent, 10 percent and

Varvara68 [4.7K]

Answer:

94% and 2934

Explanation:

The computation of the four-firm concentration ratio for this industry is

= (Total four firms market shares in an industry ) ÷ (Total firm market shares in an industry)

= (45% + 22% + 17% + 10%) ÷ (45% + 22% + 17% + 10% + 6%)

= 94% ÷ 100%

= 94%

Now the Herfindahl Index is the sum of square of all firm market share

= 45^2 + 22^2 + 17^2 + 10^2 + 6^2

= 2934

5 0

4 years ago

A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than

maxonik [38]

Answer: A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than its C. variable costs.

Explanation: A variable cost is a cost that will vary depending on the level of output that is needed. If more units of an item are needed, the variable costs will likely rise whereas if the product numbers go down, they will too. A variable cost changes and a fixed cost stays the same regardless of the production amount.

3 0

3 years ago

kent company has a sales budget for next month of $800,000. cost of goods sold is expected to be 25 percent of sales. all goods

Stolb23 [73]

The final accounts payable for Kent Company will amount to $211,200

Accounts payable are commitments with a short term. These are typically sums owed to suppliers or vendors for outstanding sums for products or services purchased. On the balance sheet, accounts payable are listed as a line item under current liabilities.

Cost of Goods Sold = Sales * 25%

COGS= 800,000 * 25%

Therefore, the Cost of Goods Sold = $200,000

Purchases = Cost of Goods Sold + Ending Inventory - Beginning Inventory of Merchandise

Purchases = (200,000 + 51,200) - 40,000 = 251,200 - 40,000

Therefore, Purchases = $211,200

Ending Accounts Payable = Beginning Inventory + Purchases - Payments

Ending Accounts Payable = 128,000 + 211,200 - 128,000

Therefore, Ending Accounts Payable = $211,200

The initial accounts payable are paid in the month and used in the month prior.

To know more about Accounts Payable, refer to this link:

brainly.com/question/13230311

#SPJ4

7 0

1 year ago