Answer:
Minimum transfer price when operating at capacity is the marginal cost + opportunity cost
Maximum transfer price is marginal cost only, when not operating at capacity.
Explanation:
Minimum transfer price when operating at capacity is the marginal cost + opportunity cost because when operating at capacity there are 2 elements involved - the cost at which it has made the units it will be transferring to another department within the organisation, and the profit it would have made if it had sold those units to others (opportunity cost)
Maximum transfer price is marginal cost only, when not operating at capacity because the department is constrained, it can only produce for the satisfaction of internal demand, not external customers; hence there is no case of opportunity costs.
Constitution has something called Bill of Rights which are your rights. Also, Supreme Court (Judicial branch) is there to interpret the laws. They can declare a law unconstitutional and all disputes between individual and government are settled in Supreme Court.
From the data given above, the investor required rate of return on the firm's stock is 10% and is equal to $4,75 that is expected to be paid each year.
If $4.75 = 10%, then the price of the stock which is 100% will be equal to $4,75 * 10= $47.50.
Therefore, the current price of the stock is $47.50.
Answer:
The correct answer is option b.
Explanation:
The fixed costs refer to that part of the cost of production which is not affected by the volume of activity. The total fixed cost remains constant in the entire production process.
The fixed cost per unit is the ratio of total fixed costs and the level of output. It increases with a decrease in level of activity.
The variable cost is the cost incurred on the variable inputs employed in the process of production. As the level of activity declines the number of variable factors employed will also decline. This will cause the total variable cost to decrease.
Im not even in business and I know it is a balance sheet