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KIM [24]
3 years ago
5

in g Management of a local catering company would like the Food Division to transfer 10,000 containers of its final product to t

he Restaurant Division for $41.00. The Food Division sells the product to customers for $98.00 per unit. The Food Division's variable cost per unit is $37.00 and its fixed cost per unit is $25.00. If the Food Division has 10,000 units of available capacity, what is the minimum transfer price the Food Division should accept?
Business
1 answer:
scZoUnD [109]3 years ago
7 0

Answer:

The minimum transfer price is $25.

Explanation:

The number of containers to be transferred =  10000 containers.

The rate of its container = $41.00

The selling price of food to customers = $98 per unit.

The variable cost per unit for food division = $37 per unit

The fixed price per unit = $25

The transfer price should be a minimum of $25 that is equal to variable cost because as per the rule the transfer price between the organization should be equal to variable cost or marginal cost. therefore, the minimum transfer price is $25.

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Damon Co. purchased 100% of the outstanding common stock of Smith Co. in an acquisition by issuing 20,000 shares of its $1 par c
Tamiku [17]

Answer: the correct answer is $70000

Explanation: the fair value of the shares given plus the fair value of the contingent consideration is the total amount paid by the buyer which is (20000 shares * $10 price per share) = $200000+$10000= $210000.

The gain of the transaction is registered as the net fair value of the acquiree that is $350000-$70000= $280000 less the sum paid by the Acquirer that is $280000-$210000= $70000.

The $15000 in direct acquisition costs are registered as period expenses and not relevant for the calculation of the gain of the transaction.

8 0
3 years ago
Leaders at ElectroExpo Inc. want to develop a results-oriented organizational culture. To do this, they devise a new system to m
neonofarm [45]

Answer: b. The leaders should find ways to enable the employees to see the value in changes that are needed for the organization to succeed

Explanation:

With regards to the information given in the question, the best option will be for the leaders to find ways to enable the employees to see the value in changes that are needed for the organization to succeed.

In every organization, communication is key between the management and the employees. In this case, the leaders should inform the employees about the reason that they are taking the decision and how the decision will have an impact on the organization.

Taking legal steps against the employees or laying them off isn't the right thing to do. The employees should be made to see the value in the changes to be made.

Therefore, the correct option is B.

5 0
3 years ago
Why should employees be wary of participating in the grapevine in a business
Kaylis [27]

Although the grapevine supplements what formal communication does not provide sometimes, and creates a sense of unity among employees, they should be wary due it carries partial information and it's more based on rumors; so it's not always trustworthy, especially when it comes to business, because important decisions depend on reliable sources to ensure favorable outcomes.

8 0
2 years ago
Heath Food Corporation’s bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity
joja [24]

Answer:

8.55%

Explanation:

For computing the current yield first we have to determine the present value by applying the present value formula which is shown below:

Given that,  

Future value = $1,000

Rate of interest = 8%

NPER = 7 years

PMT = $1,000 × 9% = $90

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

After solving this, the present value is $1,052.06

Now the current yield is

= PMT ÷ PV

= $90 ÷ $1,052.06

= 8.55%

3 0
3 years ago
Magic Realm, Inc., has developed a new fantasy board game. The company sold 35,600 games last year at a selling price of $62 per
Natasha_Volkova [10]

Answer:

1a.

                              Magic Realm, Inc.,

                         Contribution format income statement

                                   Per Unit                    Amount

Sales                               62                         2,207,200

Variable expenses         42                         (1,495,200)

Contribution margin       20                         712,000

Fixed expenses                                            (623,000)

Net operating profit                                      89,000

1b.

Degree of operating leverage: 4

2. The expected percentage increase in net operating income for next year: 184%  

Explanation:

1a. Please refer to the answer part

1b. Degree of operating leverage = Contribution margin / net operating profit = 712,000/89,000 = 8.

2.

Expected percentage increase in net operating income for next year = Expected percentage increase in sales next year x operating leverage = 23% x 8 = 184%

3 0
3 years ago
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