Answer:
Stone Foods produces the majority of its cheese products in its U.S. based dairy division at a total outlay cost of $6.00 per unit. A large portion of the finished product is sold to Division B where it is packaged and sold overseas under a different label. The tax rate in Division B's country is higher than the U.S. tax rate. Assume the company desires to minimize the overall tax impact of the transfer (i) what type of relative pre-tax income should each division desire to achieve as a result of the transfer and (ii) what type of transfer price would accomplish your answer to (i).
Dairy Division Income Division B Income Transfer Price
.
Option "D" is the correct answer - High Low High.
Explanation:
Since in Division B, the tax rate is higher than the tax rate in US-based dairy division. Therefore to minimize the impact of the overall tax, transfer price from dairy division should be high to Division B so that the dairy division income would be higher. and the income of Division B would be lower.
Hence option "D" is the correct answer.
Answer:
$155.5
Explanation:
The Consumer price index indicates how prices change through time of a determined basket of goods and services. Inflation is calculated by the percentage change of this index in two periods of time. In this case, we must calculate the percentage change:
1995: 152.4
2015: 237.0
(237-152.4/152.4)*100= 0.555*100=55.5%
The inflation rate for this period is 55.5%. To buy a similar amount of goods and services in 2015 we have to pay an 55.5% extra, which means we have to pay $155.5
Answer:
Reverse annuity mortgage RAM
Explanation:
The level of social ecology model that the health behavior
is operating is in the societal level in which this is responsible of affecting
or influencing people in the economy, the social policies of which the
companies is considered to be a part of.
