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jeka57 [31]
4 years ago
9

Decision on Transfer Pricing Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside supp

liers at a cost of $1,350 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $900 per unit. Assume that a transfer price of $1,200 has been established and that 75,000 units of materials are transferred, with no reduction in the Components Division's current sales. a. How much would Ziegler Inc.'s total operating income increase?
Business
1 answer:
qwelly [4]4 years ago
4 0

Answer:

total operating income increase $33.750.000

Explanation:

a. How much would Ziegler Inc.'s total operating income increase?

Consider the following formula

Units * (Cost of purchased from outside supplier - Variable cost)

75000 * ($1350 - $900) = $33750000

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A conflict of interest between the stockholders and managers of a firm is referred to as the:________
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A conflict of interest between the stockholders and managers of a firm is referred to as the agency problem (option c).

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The agency problem  is a conflict of interest between the managers of the company and the principal (shareholders). The agency problem

occurs when the interest of the managers and the shareholders are not aligned.

For example, if the income of managers are tied to net income, it might  motivate managers to undertake risky projects that might not maximise shareholders wealth. This would lead to agency problem.

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3 0
2 years ago
What does a victim do in court?
bagirrra123 [75]
They have there attorney make them look not Guilty.
7 0
3 years ago
Mr. Jackson purchases a home for $90,000. He paid $4,000 as an earnest money deposit, and is obtaining an 80% loan. Costs includ
Sergio [31]

Answer:

Mr. Jackson will need to bring a check to closing in the amount of $14,470

Explanation:

The computation of the closing amount is shown below:

= Down payment + title insurance + recording fees + tax proportion fee - = earned money deposit

where,

Down payment = Purchase cost × remaining percentage (100% - 80%)

                         = $90,000 × 20%

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So, the value would equal to

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8 0
4 years ago
Beth has trained extensively to get ready for a big swimming event. she has developed her muscle mass to increase her strength s
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3 years ago
The Holtzman Corporation has assets of $418,000, current liabilities of $126,000, and long-term liabilities of $131,000. There i
Evgen [1.6K]

Answer and Explanation:

The computation is shown below:

a. The book value or net worth per share is

= (Assets - current liabilities - long term liabilities - outstanding preferred stock) ÷ (common stock shares)

= ($418,000 - $126,000 - $131,0000 - $38,700) ÷ (20,000 shares)

= $6.12 per share

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= $33.92 ÷ 6.12

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8 0
3 years ago
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