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Alika [10]
3 years ago
15

Division A sells ground veal internally to Division​ B, which in​ turn, produces veal burgers that sell for $ 20.00 per pound. D

ivision A incurs costs of $ 2.25 per pound while Division B incurs additional costs of $ 8.50 per pound. What is Division​ A's operating income per​ burger, assuming the transfer price of the ground veal is set at $ 4.00 per​ burger? A. $ 4.50 B. $ 4.25 C. $ 2.25 D. $ 1.75
Business
1 answer:
kramer3 years ago
4 0

Answer:

Division A

Operating Income:

Transfer Price = $4.00

Less Costs = $2,25

Operating Income = $1.75

Explanation:

The Transfer Price of $4.00 per burger to Division B is the selling price for Division A's product.

When the costs of producing Division A's product is subtracted from the selling price (transfer price), the result is the operating income.

Operating income is, therefore, the difference between selling price and costs.  These costs include the cost of goods sold and other expenses, like wages and salaries, rent, etc.  It is the income subject to taxes and profit distribution.

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Answer:

Insurance companies manages risk by balancing the low-risk drivers and the high-risk drivers. Insurance would charge higher rates for high risk drivers.

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Explanation:

Insurance companies manages risk by sorting out the people who have a lower chance of risking a crash, with people who have a higher chance of risking a crash. They do this by charging low rates to the people that have a lower chance of causing a risk. They charge them low because they are trustworthy, and don't need to rack up a lot of money quick if they ever get into a crash. Remember, insurance makes people pay monthly so they could use that money in a accident.

But, this is different for people with higher risk. People that have a high risk of getting into an accident would be charged with a higher rate than people with lower risk. Insurance companies charge them with higher rates because since higher risk drivers get are more likely to get into an accident, insurance companies want to make sure that they can get the money for the accident as soon as possible. Insurance companies are the ones that pay for the accident, and that's why most places require you to have insurance while you drive.

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4 0
4 years ago
Read 2 more answers
Mike, a minor, buys some real estate as an investment. The contract obligates Mike to make monthly installment payments for 10 y
yawa3891 [41]

Answer: d. mike cannot disaffirm because he has already ratified the contract

Explanation:

When signing deals it's important to consider long term, this helps to make the best decision in any and most scenario. Most deals signed too cannot be reversed or change or adjusted because it'll affect the policy of the organization and won't be health for them. Mike has agreed to buy a property through a spread payment plan, changing the deal now after some years will not be possible as it distorts the plan intially agreed and goes against the policy of the organization selling the home.

5 0
3 years ago
A firm's dividend payments less any net new equity raised is referred to as the firm’s:a. operating cash flow.b. capital spendin
mojhsa [17]

Answer:

The correct answer is letter "E": cash flow to stockholders.

Explanation:

The cash flow to stockholders is the amount of money a firm pays to its debtholders and stockholders. It is calculating by subtracting the <em>dividends paid minus new equity</em> -if raised any. The Board of Directors determines the amount and the period to be considered for the dividends and if they are paid from the organization's current earnings or the reserve revenues.

3 0
3 years ago
Which is the main force behind the decisions made by producers in a free-market society?
marysya [2.9K]
The profit motive

Hope this helped!
STSN
7 0
3 years ago
Read 2 more answers
Butterfly Corp. manufactures products M1 and M2 from a joint process, which also yields a by-product, B1. Butterfly accounts for
NikAS [45]

The joint cost allocated to product M1 using the net realizable value is $198,095.

<h3>What is the joint cost?</h3>

Joint costs refer to the common production costs (direct materials, direct labor, and overheads) incurred to produce two or more products during the same process.

Based on this, the different products have a common costs that should be allocated based on some criteria.

<h3>Data and Calculations:</h3>

                                                M1              M2              B1           Total

Units produced                  25,400       13,700       10,000       49,100

Allocated joint costs                ?                 ?                ?      $ 375,000

Sales value at split-off $ 402,000  $ 268,000  $ 91,000 $ 761,000

Joint cost of M1 using the net realizable value = $198,095 ($402,000/$761,000 x $375,000)

Thus, the joint cost allocated to product M1 using the net realizable value is $198,095.

Learn more about joint costs at brainly.com/question/25408525

#SPJ1

3 0
2 years ago
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