Answer:
Minimum transfer price= $30
Explanation:
The transferring division, Division X currently has excess capacity which is equal to
<em>The total capacity - external sales = 40,000 - 35,000 = 5,000 units</em>
This implies that it can meet the sales request of division Y from the excess capacity without any opportunity cost.
In this situation, where the there is no opportunity cost associated with transfer, the minimum transfer price would be :
Minimum transfer price ≥ unit variable cost
Note that unit variable cost is $30.
<em>The unit variable cost of $30 represents the relevant cost per unit of producing a unit</em>
Minimum transfer price= $30
A price between $30 and $48 would be acceptable to both divisions
The area that is particularly challenging when recruiting workers for small businesses is compensation.
<h3>What is compensation?</h3>
It should be noted that compensation simply means how much they workers will be paid as how to motivate them.
In this case, the area that is particularly challenging when recruiting workers for small businesses is compensation.
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Answer:
Break-even point (dollars)= $810,000
Explanation:
Giving the following information:
Fixed costs= $445,500
Unitary variable cost= $45
Selling price= $100
<u>To calculate the break-even point in dollars, we need to use the following formula:</u>
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 445,500 / [(100 - 45) / 100]
Break-even point (dollars)= $810,000
- If the required rate of return is 12%, then the value of the bond will be $834;
- If the required rate of return is 15%, then the value of the bond will be $667;
- If the required rate of return is 8%, then the value of the bond will be $1250;
When maturity of the bond is in 5 years, then at different required rate of returns, the value of the bond will be,
- At 12%- $312.50
- At 15%- $285.71
- At 8%- $357.14
<h3>What is required rate of return?</h3>
The rate of interest, which is expected to be earned by an individual upon engaging or investing the given amount of money during a particular financial period, is known as a required rate of return.
Hence, the different values of bond at given required rates of return are aforementioned.
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Answer:
The option (b) 2.4 is correct.
Explanation:
We can find price elasticity of demand by using the formula shown in the attachment attached with.
Since we know the quantities of product associated with the market price of the product, by putting values in the equation we have:
Price elasticity of Demand =
= [(6000 - 4000) / (6000 + 4000)/2] / [(13 - 11) / (13+11)/2]
Price elasticity of Demand = 2.4
So this is how we can find the price elasticity of supply which says that the producers will respond to prices drop by producing lower quantity of product.