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sertanlavr [38]
2 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]2 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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On January 1, 2021, Strato Corporation borrowed $2 million from a local bank to construct a new building over the next three yea
VLD [36.1K]

Answer:

Period                           Installment    Interest Paid   Capital Paid   Balance

January 1, 2021                                                                                $2,000,000

December 31, 2021       $776,067       $160,000         $616,067    $1,383,933

December 31, 2021       $776,067         $110,715         $665,352       $718,581

December 31, 2021       $776,067         $57,486          $718,581                     0

Explanation:

<u>Step 1</u>

First clearly identify the parameters of the Loan

PV = $2,000,000

N = 3

PMT = - $776,067

P/YR = 1

i = 8%

FV = $0

<u>Step 2</u>

Since there is no missing parameter, we can then move on to construct our loan amortization schedule.

Period                           Installment    Interest Paid   Capital Paid   Balance

January 1, 2021                                                                                $2,000,000

December 31, 2021       $776,067       $160,000         $616,067    $1,383,933

December 31, 2021       $776,067         $110,715         $665,352       $718,581

December 31, 2021       $776,067         $57,486          $718,581                     0

8 0
3 years ago
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:
Anastaziya [24]

Answer and Explanation:

The preparation of  the stockholder equity section is presented below:

Tandy Company

Balance Sheet (Partial)  

Stockholders Equity :  

Contributed Capital :  

Common stock (21,900 shares ×  $6) $131,400

Preferred stock (5,000 shares × $13) $65,000

Additional Paid in Capital - Common stock (21,900 shares ×  $20)  $438,000

Additional Paid in Capital - Preferred stock (5,000 shares × $17) $85,000

Total Contributed Capital $719,400

Add: Retained Earnings $41,600

Total Stockholders Equity $761,000

4 0
3 years ago
It takes a total of 475 seconds for one technician to assemble one airrules smart phone, working alone. however, airrules manufa
maks197457 [2]
<span>Normally if one tecnician takes 475 seconds to assemble one air rule smartphone. Then it would take. 20 technicians X secs to do the same So It would take 20 tecnicians X secs = (20 * 475) / 1 = 9500 secs. I. e it takes 20 technicians 9500 secs to manufacture a smartphone. But airrules uses 20 technicians to manufacture the same phone in only 30 secs. So its efficiency would be: Number of secs it takes the 20 techician to manufacture the phone * efficiency = Normal of hours it would usually take 20 techician to manufacture the phone. So we have 30 * X = 9500 X = 9500/30 = 316.777. So they are 316.667 times as efficient.</span>
6 0
3 years ago
Sally is in the business of purchasing accounts receivable. Last year Sally purchased an account receivable with a face value of
Simora [160]

Answer:

Shally will not having any amount of bad debt deduction for the present year.

Explanation:

In the present year, Shally will not having any amount of bad debt deduction because she has a gain or income of $5,000. As, last year she has account receivable of $60,000 but this year she settled the account by receiving the $65,000 amount. So, she has received more amount than the basis in the receivable. Therefore, she will not have any bad debt deduction this year.

8 0
3 years ago
The Perez Lumber Company sells boards in a perfectly competitive market. The current marginal cost of boards at the current outp
mafiozo [28]

Answer:

c. decrease monthly output to 200 board feet.

Explanation:

If the firm wants to maximize profit it should decrease monthly output to 200 board feet demand by doing so , vital rate  will ultimately increase the cost of the product and shift them to the profit. The correct answer is C.

7 0
3 years ago
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