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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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1 year ago
The passage suggests that the high inflation in the United States and many European countries in the 1980's differed from inflat
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For example, if we look at what is happening in two South American countries right now; Currently Venezuela is facing a hyperinflation measured by millions, and Argentina's current inflation rate is around 60%.

Back in the 1980s, hyperinflation rates were much more common. Argentina, Bolivia, Brazil, Mexico, Peru and Nicaragua, all suffered from hyperinflation (inflation rates in the 1,000s).

The US dollar is considered a very stable currency, that is why an inflation rate of around 10% was considered extremely high for American standards, but not so high compared to the rest of the world.

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