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
svet-max [94.6K]
3 years ago
14

The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $8 per unit. Its variable

cost is $3 per unit, and its fixed cost per unit is $1.50. Management would like the fastener division to transfer 12,000 of these zippers to another division within the company at a price of $3. The fastener division could avoid $0.20 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price.
Business
1 answer:
qaws [65]3 years ago
6 0

Answer and Explanation:

The computation of the minimum transfer price is shown below:

a. For Not operating at full capacity

Minimum transfer price = Variable cost + Opportunity cost

= $3 - $0.20 + 0

= $2.80

b. For operating at full capacity

Minimum transfer price = Variable cost + Opportunity cost

= $2.80 + $8 - $3

= $2.80 + $5

= $7.80

We simply applied the above formulas

So, that the each part could come

You might be interested in
When a firm is operating in a perfectly competitive labor market the wage the firm increases with the number of workers hired. t
djverab [1.8K]

Answer: When a firm is operating in a perfectly competitive labor market: <u>"the firm can buy as much or as little labor as it wants at a fixed, going wage rate."</u>

Explanation:

1-  "the wage the firm increases with the number of workers hired" - Is incorrect because The salary paid by the company is treated as a constant salary.

2- Correct.

3- "the firm’s marginal expense of labor (MEL) equals the cost of all workers hired." is  incorrect because the firm’s marginal expense of labor (MEL) is equal to the salary (wage) rate.

7 0
3 years ago
A firm has market power if it can a. maximize profits. b. minimize costs. c. influence the market price of the good it sells. d.
VikaD [51]

Answer:

Option C: Influence the market price of the good as it sells

Explanation:

Market Power is simply when a firm is able to raise price above the equilibrium level by not and without losing all of its customers. It depends on largely on the closeness of substiutes.

A firm has market power if it can Influence the market price of the good as it sells to its customer and can regulate it when necessary.

5 0
3 years ago
Net working capital is defined as current assets divided by current liabilities.
Ahat [919]

Answer:

The answer is False.

Explanation:

False, because the net working capital is determined by subtracting all the current liabilities from the current assets. But in the question, it says net working capital is determined by dividing the current assets with current liabilities which is wrong. Therefore, if the current assent is 10000 dollars and current liabilities are 5000 dollars then net working capital is 10000 – 5000 = $5000.

7 0
3 years ago
For 2014, Taxpayer (TP) wants to recognize a deduction. The deduction involves a statute that has not changed since enacted in 1
Vesna [10]

Answer:

Option c. is correct

Explanation:

Under the Golsen rule, the Tax Court must follows the Court of Appeals such that the court of appeals has direct jurisdiction over the taxpayer. The Court is said to reach a decision without calculating the tax when a Tax Court decision is said to be entered under Rule 155.

In this question, The Golsen rule applies here and weakens the legal justification for the deduction

4 0
3 years ago
What is the term for a more complex production strategy that combines approaches from more than one basic strategy?
VARVARA [1.3K]
On Harvard Business News it explained this connection on strategic management, it links all the strategies and complexities in the business. Because of the diversity and continuous change in business schemes and application, there is a need to merge everything and all the phases that occurred in the business. The aim of strategic management is to simplify everything and make it individualized and cater the clients on the services or products it has.
7 0
3 years ago
Other questions:
  • In an imperfectly competitive labor market, the cost of labor inputs and the value of the products sold will _________ vary as m
    5·1 answer
  • How do u maintain your allowance
    10·1 answer
  • Johanna agrees to purchase Jessie’s land so that she can build a golf course. They write a contract, and Johanna transfers the d
    15·1 answer
  • When Terry Doyle of CommuniCom, Inc. created smaller, more independent maintenance units, he was performing the function of:
    6·2 answers
  • BCD Partnership plans to distribute cash of $20,000 to partner Brad at the end of the taxyear. BCD reported a loss for the year,
    15·1 answer
  • You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in t
    5·1 answer
  • A company has developed a new smart clock. If the clock is successful, the present value of the payoff (at the time the product
    15·1 answer
  • On January 1, 2020, HD Corp. paid $60,000 and issued a 5-year noninterest bearing note payable with a face value of $120,000 in
    8·1 answer
  • Emily's grandmother bought her a treasury bond in 2020. When will it reach its maturity date?
    7·2 answers
  • Giant Industries has a $674,232 gross operating income, operating expenses of $329,129, and other expenses totaling $38,719. Wha
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!