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SIZIF [17.4K]
3 years ago
8

The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number

of transistors needed is 8,000 per month. Nelson Company's electronics division can produce the transistors for a cost of $4.00 each and they have plenty of capacity to manufacture the units. The $4 is made up of $3.25 in variable costs, and $0.75 in allocated fixed costs. What should be the range of a possible transfer price?
A. $3.26 to $3.49

B. $3.51 to $3.99

C. $3.25 to $3.50

D $3.26 to $3.99
Business
1 answer:
8_murik_8 [283]3 years ago
6 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number of transistors needed is 8,000 per month. Nelson Company's electronics division can produce the transistors for a cost of $4.00 each and they have plenty of capacity to manufacture the units. The $4 is made up of $3.25 in variable costs, and $0.75 in allocated fixed costs.

Because there is unused capacity, we will not have into account the fixed costs.

Unitary cost= $3.25

It is more convenient to produce in house. The indifference price is $3.50.

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Answer: (D) Support process

Explanation:

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The main purpose of the support process is to manage the development and the configuration management in an organization.

According to the given question, the support process is refers to the business process which include the purchasing the various types of materials that is used in the manufacturing purpose such as installations and also managing the inventory system.  

 Therefore, Option (D) is correct answer.

4 0
3 years ago
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3 0
3 years ago
A machine is purchased on January 1, 2018, for $102,000. It is expected to have a useful life of eight years and a residual valu
allochka39001 [22]

Answer:

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Explanation:

Giving the following information:

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2018= 2*[(102,000 - 11,000)/8]= $22,750

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I hope to helped you!
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