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alukav5142 [94]
3 years ago
14

Southern Pride Industries would like its Alabama Division to sell 30000 units to its Arkansas Division for a price of $39. The A

labama Division is currently operating at capacity. Alabama Division’s unit variable cost is $24, unit fixed cost is $15, and unit selling price is $60. What is the minimum transfer price that the Alabama Division should accept?
Business
1 answer:
mina [271]3 years ago
7 0

Answer:

The minimum transfer price that the Alabama Division should accept is $60 per unit.

Explanation:

The division providing the goods internally often has the opportunity to sell these same goods externally instead and so the minimum they will be willing to charge another division is cost plus their profit margin (i.e. the minimum they would normally charge an external customer).

the minimum price to be charged is :

Variable cost per unit = $24

Fixed Cost per unit = $15

Total Cost per unit = $39 and the profit margin when added makes its selling price to be equal to $60 (i.e. the price which is to be charged from outside customers).

Alabama Division will cover its minimum opportunity cost i.e. its sales price to the external customers which it will charge from Arkansas division .

Minimum transfer price = $60 per unit.

Therefore, The minimum transfer price that the Alabama Division should accept is $60 per unit.

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Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses, an
evablogger [386]

Answer:

SWOT analysis.

Explanation:

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SWOT analysis is designed in such a way that it is most effective at the preliminary stage of planning a business strategy.

It is primarily used to set organisation objectives and to identify internal and external factors that will influence the set objectives.

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3 years ago
You are more effective when you do not have too many things happening at once?<br> agree or disagree
spin [16.1K]

Hello,


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3 years ago
Last year Rennie Industries had sales of $395,000, assets of $175,000 (which equals total invested capital), a profit margin of
maxonik [38]

Answer: 5.9%

Explanation:

Before:

Equity is calculated as:

= Total Assets / Equity Multiplier

= $ 175,000 / 1.2

= $ 145,833

Therefore, ROE will be:

= (Turnover × Profit Margin) / Equity

= ($ 395,000 × 5.3%) / $ 145,833

= $ 20935 / $145,833

= 0.1436

= 14.36%

After:

New Total Assets will be:

= $ 175,000 - $ 51,000

= $ 124,000

Equity

= Total Assets / Equity Multiplier

= $ 124,000 / 1.2

= $ 103,333

ROE will then be:

= (Turnover × Profit Margin) / Equity

= ($ 395,000 × 5.3%) / $ 103,333

= $ 20935 / $ 103,333

= 0.2026

= 20.26%

Therefore, the change in ROE will be:

= 20.26% - 14.36%

= 5.9%

= 4.035%

7 0
3 years ago
In the context of opportunity identification and selection, DuPont's discovery of Surlyn, a material with hundreds of potential
oksian1 [2.3K]

Answer: The correct answer is "B. A new resource".

Explanation: The discovery of Surlyn de DuPont, being a new material with multiple potential uses, which could be applied to the manufacture of many products would clearly fall under the category "a new resource".

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3 years ago
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In 2013, the market price for a 3,000 square foot home in south tampa, florida was $350,000 and 358 new homes were built. in 201
vivado [14]
Answer would be .24, according to my "calculations"
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