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SIZIF [17.4K]
4 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]4 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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gayaneshka [121]

Answer:

$21,800

Explanation:

The computation of 4-year revenue is as shown below:-

Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2

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= $20,000

Interest Revenue = Bond Income + Amount of Discount Amortized

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Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.

6 0
3 years ago
United Machining's margin was 2% and turnover was 3.0 on sales of $60 million for the year. On the basis on this information____
Hunter-Best [27]

Answer:

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Explanation:

net income is calculated by multiplying the percentage margin by the sales. We have,

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we have, ($60,000,000 ÷ 3.0)

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To calculate the ROI, margin and turnover are multiplied.

we have,

(2% × 3.0) = 6%

Cheers.

3 0
3 years ago
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4 0
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Answer:

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8 0
3 years ago
Read 2 more answers
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