Answer:
cost-based transfer pricing
Explanation:
If the firm uses negociated rtansfer pricing they will stablish the transfer price based on manager bargain skill and leverage of each division. The CEO will not a grip on controlling cost across all dvisions, the managers will.
Therefore the best option is to go with a cost-based transfer pricing. The CEO can determinatethe method to determinate the cost and indriectly the cost across all divisions.
Answer:
(i) 900 CDs
(ii) Greater than; $1,650
Explanation:
(1) Break-event point will be when the contribution margin from total sales is equal to fixed costs,
Contribution Margin = Selling price - variable cost
= $(21.5 - 9.5)
= $12
Contribution Margin *Number of CDs sold = $10,800
Break-even point for Studio A = 10,800 ÷ 12
= 900 CDs
(2) Studio A would be more profitable when the extra profit earned from per unit sale of CD exceeds the extra fixed cost given in Studio A.
Extra Contribution margin in Studio A = $(12-10)
= $2
Extra Fixed cost in Studio A = $(10,800 - 7,500)
= $3,300
Studio A should be chosen if sales is greater than (3300/2) = $1,650.
<u>Explanation:</u>
It is recommended by some to determine a card's current market value of by determining whether the card has been professionally graded by the Professional Sports Authenticator, if yes, then one can check up the value on the Sports Market Report (SMR).
However, the Hank Aaron card is Estimated to have a PSA 9 Mint Value of $17,500.
Answer: option E -Corporation
Explanation:
Corporation is the most effective form of business organization for raising capital
Answer:
A.) 33,000
Explanation:
The computation of the gross profit is as follows;
But before that following calculations need to be done
Percentage of completion = Cost incurred in 2020 ÷ Total cost
where,
Total cost = Cost incurred + estimated cost
= $180,000 + $200,000
= $380,000
Now
Percentage of completion is
= $180,000 ÷ $380,000
= 47.368%
Now
Revenue to be recognized in year 2020 is
= contract revenue × percentage of completion
= $450,000 × 47.368%
= $213,156
So,
Gross profit = Revenue - Cost
= $213,156 - $180,000
= $33,156
= $33,000