1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jarptica [38.1K]
2 years ago
10

Stone Foods produces the majority of its cheese products in its U.S. based dairy division at a total outlay cost of $6.00 per un

it. A large portion of the finished product is sold to Division B where it is packaged and sold overseas under a different label. The tax rate in Division B's country is higher than the U.S. tax rate. Assume the company desires to minimize the overall tax impact of the transfer (i) what type of relative pre-tax income should each division desire to achieve as a result of the transfer and (ii) what type of transfer price would accomplish your answer to (i).
Dairy Division Income Division B Income Transfer Price
A High Low Low
B Low High Low
C. Low High High
D. High Low High
E. Low High Low

Which letter A, B, C, D, or E is the correct answer?
Business
1 answer:
lubasha [3.4K]2 years ago
3 0

Answer:

Stone Foods produces the majority of its cheese products in its U.S. based dairy division at a total outlay cost of $6.00 per unit. A large portion of the finished product is sold to Division B where it is packaged and sold overseas under a different label. The tax rate in Division B's country is higher than the U.S. tax rate. Assume the company desires to minimize the overall tax impact of the transfer (i) what type of relative pre-tax income should each division desire to achieve as a result of the transfer and (ii) what type of transfer price would accomplish your answer to (i).  

Dairy Division Income Division B Income Transfer Price .

Option  "D"  is the correct answer -  High Low High.

Explanation:

Since in Division B, the tax rate is higher than the tax rate in US-based dairy division. Therefore to minimize the impact of the overall tax, transfer price from dairy division should be high to Division B so that the dairy division income would be higher. and the income of Division B would be lower.

Hence option  "D" is the correct answer.

You might be interested in
Lynn regularly works a 40-hour week and earns $9 per hour. She receives time-and-a-half pay for each hour of overtime she works.
ANTONII [103]

Answer:

Her regular gross pay is $360

Explanation:

Regular gross pay is that pay which the person earn on daily basis or it is a fixed amount which he gets after completing a month.

In the question, we have to find out the regular gross pay which includes the daily earning of a person

So, her regular gross pay is equal to

= number of hours × rate per hour

= 40 × $9

= $360

We don't include overtime wages as it is not included in  regular gross pay. So, it is ignored.

Hence, her regular gross pay is $360

6 0
2 years ago
Where does jacob sartorius live now like his adress not state
sesenic [268]
LA califora 5421 beach street 2357 LA city
3 0
3 years ago
Read 2 more answers
What is the value of a preferred stock where the dividend rate is 14% on a $100 par value? Assume the discount rate for this sto
Ulleksa [173]

Answer:

Value of preferred stock will be $140

Explanation:

We have given par value of preferred stock = $100

Dividend rate = 14 %

Discount rate on preferred stock = 12%

Preferred stock dividend =face\ value\times dividend\ rate=100\times 0.14=14

We have to find the value of preferred stock

Value of preferred stock =\frac{preferred\ stock\ dividend}{discount\ rate}=\frac{14}{0.1}=140

So value of preferred stock will be $140

8 0
2 years ago
Suppose that Spain and Denmark both produce rye and wine. Spain's opportunity cost of producing a bottle of wine is 5 bushels of
34kurt

Explanation:

By comparing the opportunity cost of producing wine in the two countries, you can tell that Spain has a comparative advantage in the production of wine and Denmark has a comparative advantage in the production of rye.

Spain can gain from specialization and trade as long as it receives more than 5 of rye for each bottle of wine it exports to Denmark. Similarly, Denmark can gain from trade as long as it receives more than 1/10  of wine for each bushel of rye it exports to Spain.

The terms of trade (that is, price of wine in terms of rye) would allow both Denmark and Spain to gain from trade :

9 bushels of rye per bottle of wine

8 bushels of rye per bottle of wine

6 0
3 years ago
What do law enforcement public safety corrections and security agencies usually provide to help their employees manage stress Pl
Furkat [3]

Answer:

The following have been discovered to be of help in reducing stress for law enforcement and public safety officials such as the Police and Military.

  • Attaining and maintaining work-life balance
  • deliberately taking out time for leisure activities
  • Keeping a very positive mindset always
  • setting and pursuing after goals and avoiding procrastination
  • Planning their daily work for enhanced effectiveness

Explanation:

Stress amongst law enforcement officials and public safety officials has become very crucial due to the following reasons:

1. It's easy for stress to go on for a prolonged period of time in the lives of these officials because of the nature of their work.

2. They are always in the face of danger and have to take life-or-death decisions/risks very often.

3. Relative inconclusive nature of their work

4. Frequent changes in shifts

5. Financial challenges and

6. In some cases health challenges of the officers in question or loved ones.

Stress amongst Law enforcement officials are very difficult to track because as they are trained to be and look tough...hence a the thinking is that a demonstration of weakness or admission of challenges could be interpreted as incompetence or inability to continue on the job.

Cheers!

4 0
2 years ago
Other questions:
  • In february, when paula, the manager of a landscaping company, is modifying worker schedules to handle the expected increase in
    9·1 answer
  • In the hospitality industry, the two largest expositions are the american hotel & lodging association conference and the ___
    10·1 answer
  • A monopolistically competitive firm is operating in the short run at the optimal level of output and is earning negative economi
    12·1 answer
  • What role do individuals play in a capitalist system?
    15·1 answer
  • Marketing managers at a cosmetic company wanted to find out how resistant their product is to smudging. They hired a research fi
    7·1 answer
  • If the interest rate is 8%, what is the 4-year discount factor? What is the 4-year annuity factor? What is the relationship betw
    5·1 answer
  • During March, Patt, Inc. purchases and uses 8,800 pounds of materials costing $35,640 to make 4,000 tiles. Patt's standard mater
    13·1 answer
  • Manero Company included the following information in its annual report: 20X3 20X2 20X1 Sales$178,400 $162,500 $155,500 Cost of g
    6·1 answer
  • At the end of 2003, Ritzcar Co. fails to accrue sales commissions earned during 2003, but paid in 2004. The error is not repeate
    12·1 answer
  • Johan was a newly hired attorney for Crontel Manufacturing, Inc. Even though he reported directly to the president of the compan
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!