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Lady_Fox [76]
2 years ago
6

The compressor division at Norco Corporation can buy the coils it requires either from the company's coil division or from the m

arket. Assuming the coil division has enough idle capacity to satisfy the compressor division’s requirements, which of the following will be the lower limit for setting the transfer price between the two divisions?
a. Selling price per unit of the coil division.
b. Cost of buying from outside suppliers for compressor division.
c. Variable cost of production for coil division.
d. Average opportunity cost of lost sales for coil division.
Business
1 answer:
Molodets [167]2 years ago
8 0

Answer:

c.

Explanation:

Based on the information provided within the question it can be said that the lower limit for setting the transfer price will be the variable cost of production for coil division. This is because the coil division price for it's coils is what is being looked at since it is determined by their production output and their capacity to meet the compressor division's requirements.

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A merchandising company's budget includes the following data for January: Sales: $400,000; COGS: $270,000; Administrative salari
Maslowich

Answer:

Total general and administrative expenses           $

Administrative salaries                                        1,250

Rent on administrative building                          30,000

Miscellaneous administrative expenses             5,000

Total general and administrative equipment      35,250

Explanation:

The total general and administrative expenses include administrative salaries, rent on administrative building and miscellaneous administrative expenses.

8 0
2 years ago
On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway p
Delicious77 [7]

Answer:

DR Interest receivable                                  26,400

CR Interest revenue                                                       26,400

Explanation:

As first lease has already been paid, the amount left of the lease is;

= 280,000 - 40,000

=$240,000

Interest is 11% so the interest to be received in December is;

= 11% * 240,000

= $‭26,400‬

This will be debited to Interest receivable as it is money owed and credited to Interest revenue as it is money earned.

6 0
3 years ago
Drawing on material in the chapter and your own research, prepare a paper describing your views on the major social and legal is
atroni [7]

Answer: Online Sales Taxes

Explanation:

Taxes has grown much bigger for most online retailers, when the like of Amazon started selling products online they were not billed to pay tax, those taxed then where companies who had a building(structure) but now online stores are now subject to taxes.

Some of the tax are much that it affects sellers who are not able to break even and make profit, especially when they don't meet targets they've set for themselves.

7 0
2 years ago
If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year, how much would he ne
Stels [109]

Answer:

The answer is $3,214,285.71

Explanation:

Price of each award is $45,000

And there are 5

Therefore, we have 5 x $45,000

=$225,000.

So, $225,000 is the future value.

Rate of return(r) in 7% and it is being assumed that it is forever.

So, so how much will be needed to fund his prizes(present value)?:

PV = FV/r

= $225,000/0.07

=$3,214,285.71

5 0
3 years ago
You want to construct a portfolio containing equal amounts of U.S. Treasury bills and two stocks. If the beta of the first stock
Tasya [4]

Answer:

the beta of the second stock is 1.77

Explanation:

The beta of the second stock is shown below;

Investment in each = (1 ÷ 3)

Now as we know that

Portfolio beta = Respective investments × Respective weights

1 = (1 ÷ 3 × 1.23) + (1 ÷ 3 × beta of the second stock) + (1 ÷ 3 × 0)

We assume the Beta of risk-free assets would be zero

1 = 0.41 + (1 ÷ 3 × beta of the second stock)

The beta of the second stock is

= (1 - 0.41) × 3

= 1.77

Hence, the beta of the second stock is 1.77

8 0
3 years ago
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