Answer:
Option A; 2.5
Explanation:
Average Accounts Receivable =
<u>Accounts Receivable(Opening) + Accounts Receivable (Closing</u>
2
<u>$220,000+$340,000</u>
2
$280,000
Vici's Receivables Turnover Ratio 2009= <u>Credit Sales</u>
Average Accounts Receivables
Credit Sales= $1000,000×70%=$700,000
Accounts Receivables Turnover Ratio=<u> 700,000</u>
280,000
A. 2.5
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There's an obvious answer... high risk; ergo high return.
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.