Answer:
Georgia will establish a transfer price of $18, that is, $22 - $4 = $18.
Explanation:
Since the company has excess capacity, the transfer price should be variable cost. Georgia has a plan to reduce variable cost on internal transfers by $4. Thus, the appropriate transfer price is $22 - $4 = $18.
Answer:
14 years
Explanation:
Given:
Leader country GDP = $50,000
Follower country GDP = $25,000
Growth rate of follower country = 5%
It is given that growth rate of leader country is "0" So real GDP will be $50,000.
Follower country GDP is half.
So, according to double match formula
Number of years to double = 70 years / rate of growth
Number of years to double = 70 years / 5%
Number of years to double = 14 year
So, In 14 years follower country will catch the GDP of Leader country.
Answer:
A) retained earnings represents a claim on cash.
Explanation:
Retained earnings are the accumulated profits that a company keeps that are left after dividends are paid. Retained earnings are the equivalent of a savings account for an individual. Retained earnings are shown in the balance sheet as part of owners' equity.
For example, corporation A had a net profit of $10 million during last year, and it paid dividends for a total of $4 million, its retained earnings for last year are $6 million.
Companies use retained earnings as money available for financing new or existing projects.
<span>Through specialization, both producers and consumers benefit. On the producer side, specialization allows producers to best use their resources in the most efficient manner possible by playing to their strengths, thus maximizing profit. On the consumer side, the fact that producers are specialized and thus efficient in their production ensures lower production costs than if products were made by less-specialized producers, translating into lower consumer-facing prices.</span>
