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sertanlavr [38]
3 years ago
11

Tuttle Motorcycles Inc. manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other

motorcycle companies and internally to the Production Division. It has been decided that the Engine Division will sell 20,000 units to the Production Division at $1,050 a unit. The Engine Division, currently operating at capacity, has a unit sales price of $2,550 and unit variable costs and fixed costs of $1,050 and $750, respectively. The Production Division is currently paying $2,400 per unit to an outside supplier. $90 per unit can be saved on internal sales from reduced selling expenses. What is the minimum transfer price that the Engine Division should accept?
Business
1 answer:
stiks02 [169]3 years ago
4 0

Answer:

The minimum price is $960 per unit

Explanation:

Giving the following information:

The Engine Division, currently operating at capacity, has a unit sales price of $2,550 and unit variable costs and fixed costs of $1,050 and $750, respectively. The Production Division is currently paying $2,400 per unit to an outside supplier. $90 per unit can be saved on internal sales from reduced selling expenses.

Because there is unused capacity, we will no have into account the fixed costs.

Variable cost= 1,050 - 90= $960

The minimum price is $960

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Answer:

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The price is the value which is given to the customers

The product is the item which is to be shown to the customers

The place is the location in which the product is sold to the customers

And the last is a promotion in which the product is communicated to the end numbers of people either by word of mouth, by adverting, etc

                                   

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3 years ago
The assets for BIZZ0 in 2018 were $187,300; the liabilities for that year were $275,600; and the net income was $17,700. What wa
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Answer: 9.45%

Explanation:

From the question, we are informed that the assets for BIZZ0 in 2018 were $187,300, the liabilities for that year were $275,600; and the net income was $17,700.

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8 0
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Seminole Company began year 2017 with 23,000 units of product in its January 1 inventory costing $15 each. It made successive pu
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4 0
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James hires Franco for a painting job. Their contract explicitly states that​ Franco's employment can be terminated if he is emp
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Answer: condition subsequent

                                         

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Answer:

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2. Information Search: This is the next stage where the consumer begins to search for how to close the need gap.

3. Evaluation of Alternatives: After searching for  available information on potential way(s) to meet the existing need, the product of the search could reveal numerous alternatives from which a choice will be made after thorough evaluation

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