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ki77a [65]
3 years ago
14

Quinn Inc. has a number of divisions. One division, Style, makes zippers that are used in the manufacture of boots. Another divi

sion, LeatherStuff, makes boots that use the zippers and needs 90,000 zippers per year. Style incurs the following costs for one zipper: Direct materials $0.23 Direct labor 0.20 Variable overhead 0.95 Fixed overhead 1.32 Total $2.70 Quinn has capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers next year. LeatherStuff currently buys zippers from an outside supplier for $3.50 each (the same price that Style receives). Assume that Style and LeatherStuff have agreed on a transfer price of $3.25. What are the total cost savings for LeatherStuff?
Business
1 answer:
attashe74 [19]3 years ago
7 0

Answer:

Cost saving per zipper

= External price - Agreed transfer price

= $3.50 - $3.25

= $0.25

Total cost saving

= $0.95 x 90,000 zippers

= $85,500

Explanation:

In this case, we need to calculate the saving per zipper which is external price minus agreed transfer price. Then, we will multiply the saving per zipper by the quantity of zipper required by LeatherStuff, which is 90,000 zippers.

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Alexus [3.1K]

Answer:

False

Explanation:

The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting records on the cash basis.

This is False because cash flows are also made for businesses that accounting records on the accrual basis rather than cash basis.

The cash flow is computed both by Direct and Indirect methods.

In indirect method of Cash flow Net income is computed using accrual income which recognizes revenues when earned and expenses when incurred.

5 0
4 years ago
Read 2 more answers
How do public relations and advertising differ?
lukranit [14]

Answer:

B. Advertising focuses on paying for time or space that allows advertisers to disseminate their organization's messages about its products and services; in public relations, credibility helps to earn media recognition.

Explanation:

Public relations involve the creation of a good reputation in society. In public relations, a business engages in activities that create good relations with consumers and the media. The media picks good deeds of the company and writes, thereby promoting the brand name of the business.

A significant difference between advertising and public relation is that advertisements are paid for while public relations is free. Public relations activities will include the business sponsoring publicized events such as sports and art concerts. Participating in charity work is also a way of creating a good reputation. The business benefits by getting an opportunity to promoting its brand name in these events.

7 0
4 years ago
br company has a contribution margin of 12%. sales are $629,000, net operating income is $75,480, and average operating assets a
iragen [17]

The correct option to the given question is option 2) 12.0%

Br company's return on investment is 12.0%

The creation of novel ROIs known as "social return on investment," or SROI, has caught the attention of certain investors and companies. SROI was first created in the late 1990s and considers wider effects of projects utilizing extra-financial value (i.e., social and environmental metrics not currently reflected in conventional financial accounts).

SROI aids in comprehending the benefits of specific environmental, social, and governance (ESG) standards utilized in socially responsible investment (SRI) activities.

For instance, a business might opt to switch to all LED lighting and recycle water in its manufacturing. However, the net benefit to society and the environment could result in a positive SROI. These initiatives have an immediate cost that may have a negative impact on traditional return on investment.

Question

br company has a contribution margin of 12%. sales are $629,000, net operating income is $75,480, and average operating assets are $142,000. what is the company's return on investment (roi)?

Options:

  1. 4.4%
  2. 12.0%
  3. 53.2%
  4. 0.2%

To learn more about return on investment click here

brainly.com/question/13166641

#SPJ4

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1 year ago
Jeanie realizes that her values differ significantly from some of her younger subordinates. what should jeanie do to understand
m_a_m_a [10]
<span>Seek out others' points of view and perspectives</span>
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Hich pricing strategy involves setting a high price for an exclusive, high-end product?
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Yes, this encourages the buyer to pay more for an item especially if it is by a well known branded. This gives them to opportunity to brag and boast with their purchase. Also when the product is well known consumers are going to try their absolute best to buy it, this is going to make the product scare, hence increasing its price.
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