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Pavel [41]
3 years ago
13

With negotiated transfer pricing, what is the minimum transfer price if operating at capacity? What is the minimum transfer pric

e if not at capacity?
Business
1 answer:
dezoksy [38]3 years ago
8 0

Answer:

Minimum transfer price when operating at capacity is the marginal cost + opportunity cost

Maximum transfer price is marginal cost only, when not operating at capacity.

Explanation:

Minimum transfer price when operating at capacity is the marginal cost + opportunity cost because when operating at capacity there are 2 elements involved - the cost at which it has made the units it will be transferring to another department within the organisation, and the profit it would have made if it had sold those units to others (opportunity cost)

Maximum transfer price is marginal cost only, when not operating at capacity because the department is constrained, it can only produce for the satisfaction of internal demand, not external customers; hence there is no case of opportunity costs.

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2 years ago
The amortization of a premium on bonds payable: A) has no effect on the cash payments for interest reported in the operating act
Aleks [24]

Answer:

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3 years ago
What does difficult to find finance mean?
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4 0
3 years ago
Suppose that $2500 is placed in a savings account at an annual rate of 5%, compounded quarterly. Assuming that no withdrawals ar
babymother [125]

Answer:

number of periods = 8 years.

Explanation:

We know,

Future Value = Present value × (1 + r)^{n}

Here,

Present value = PV = $2,500

Future value = FV = $3,500

Interest rate (Compounding) = 5% = 0.05

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Putting the values into the above formula,

$3,500 = $2,500 × (1 + 0.05)^{n}

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5 0
3 years ago
Hoosier Manufacturing operates a production shop that is designed to have the lowest unit production cost at an output rate of 1
Hitman42 [59]

Answer:

124.38%

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8 0
3 years ago
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