The perception that Ben would imply on his products is that the cost of ownership could be possible for pricing. In addition, this kind of pricing would significantly aid the buyer on knowing what are the direct and indirect costs of a specific product or service wherein it is usually accronymed as TCO (Total cost of ownership)
Answer:
The minimum transfer price is $92
Explanation:
Minimum transfer price = Variable cost + Opportunity cost
= $42 + $(92-42)
= $42 + $50
= $92
The solution for this problem is get first the total sales, credit sales and receivables turnover.
187,000 / 0.086 = $2,174,418 this is your total sales
2,174,418 x 60% = $1,304,651 is your credit sales
1,304,651 / 126,370 = 10.32 times is the Receivables turnover
365 / 10.32 = 35.37 days is the day's sales in receivables
Answer:
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Answer:
B. decrease
Explanation:
The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.