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jarptica [38.1K]
3 years ago
10

The Can Division of Sheffield Corp. manufactures and sells tin cans externally for $0.60 per can. Its unit variable costs and un

it fixed costs are $0.24 and $0.06, respectively. The Packaging Division wants to purchase 50,000 cans at $0.30 a can. Selling internally will save $0.03 a can.
Required:
1. Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept?
Business
1 answer:
Law Incorporation [45]3 years ago
6 0

Answer:

Minimum transfer price  =$ 0.57

Explanation:

The Can Division of Sheffield Corp is already operating her full capacity,

This implies that it call sell all it can produce to external buyers, to remain indifferent it will have have to make the same amount of contribution from internal sales it would from external.

Therefore the minimum transfer price:

Minimum transfer price= Variable cost - internal savings in variable cost  + contribution from external sales

Savings in variable cost = $0.03

Contribution from external sales = $0.60 - $0.24 = $0.36

The minimum transfer price would be equal

Minimum transfer price = 0.24 - 0.03  + 0.36 = 0.57

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Outdoor Expo provides guided fishing tours. The company charges $300 per person but offers a 20% discount to parties of four or
Simora [160]

Answer:

May 2  No entry is required as the transaction is yet to happen

May 7  DR Accounts Receivable                                       $1,200

                 CR Tour Revenue                                                           $1,200

May 9  DR No entry required

May 15  DR Sales Allowance (1,200 * 30%)                        $360

                    CR Accounts Receivable                                             $360

May 20  DR Cash                                                             $789.60

              DR Sales Discount                                              $50.40

                    CR Accounts Receivable                                            $840

Working

Accounts Receivable = 1,200 - 360 sales allowance = $840

Sales Discount = 840 * 6% discount = $50.40

Cash = 840 - 50.40 = $789.60

b. Net Revenues

=  Revenue - Sales allowance - Sales discount

= 1,200 - 360 - 50.40

= $789,60

c. Partial Income Statement

Tour Revenues                                                         $1,200

Less:

Sales Allowance                                   $360

Sales Discount                                   <u> $50.60 </u>    

                                                                             <u>  ($410.60)</u>

Net Tour Revenue                                                 $789.40

8 0
3 years ago
In countries where inflation is expected to be high, interest rates also will be high, because investors want compensation for t
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Answer:

Fisher effect

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Fisher effect is the effect in the economic theory that is established by the economist Irving Fisher, which states the relationship among the inflation and both nominal and the real interest rates.

This effect state that the real rate of interest equals to the nominal rate of interest deduct the expected inflation rate.

So, the relationship which is mentioned in the question is the fisher effect as it state the rate of interest that reflect the expectations likely the future inflation rates.

5 0
3 years ago
A ________ is a contract that provides that a seller of a business or an employee will not engage in a similar business or occup
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Answer:

The answer is non-compete agreement

7 0
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we would expect a(n) (fill in the blank) firm to have the highest inventory, while a(n) (fill in the blank) firm should have the
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An industry's overall strong sales or effective operations can be indicated by high inventory turnover. Lead time describes the amount of time needed to perform a procedure from start to finish.

<h3>What are the benefits of lead time in business?</h3>

In many sectors, lead time is a crucial statistic. To prevent a supply delay, which could have a severe impact on customer satisfaction, contractor dependencies, and cost efficiency in general, it is essential to calculate lead times accurately and consistently.

<h3>Why is the inventory so high?</h3>

It typically denotes some sort of mismanagement of stock demand as a result of things like excessive purchases, incorrect predictions, canceled orders, a poor economy, unexpected weather changes, uncertain consumer demand, or late or early delivery of goods.

To know more about inventory visit:-

brainly.com/question/14184995

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5 0
1 year ago
An Indiana state statute requires amusement parks to maintain equipment in certain condition for the protection of patrons. Jasp
Ivan

Answer:

The answer is: D) Negligence

Explanation:

Negligence happens when you fail to give enough care or attention to something (or someone) that you were responsible for.

In this case Jasper´s Fun Park (JFP) committed negligence because they were responsible for the proper maintenance of their equipment. If Kaitlin was injured due to the lack of proper maintenance of the equipment, then JFP is responsible for that.

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