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Ray Of Light [21]
3 years ago
8

Teslum Inc. has a number of divisions, including the Machina Division, a producer of high-end espresso makers, and the Java Divi

sion, a chain of coffee shops.
Machina Division produces the EXP-100 model espresso maker that can be used by Java Division to create various coffee drinks. The market price of the EXP-100 model is $950, and the full cost of the EXP-100 model is $475. Required:
1. If Teslum has a transfer pricing policy that requires transfer at full cost, what will the transfer price be?
2. If Teslum has a transfer pricing policy that requires transfer at market price, what would the transfer price be?
3. Now suppose that Teslum allows negotiated transfer pricing and that Machina Division can avoid $135 of selling expense by selling to Java Division.
What is the minimum transfer price?
What is the maximum transfer price?
Business
1 answer:
Aliun [14]3 years ago
6 0

Answer:

1. $475

2. $950

3. $815

4. $950 per unit

Explanation:

1. If Teslum has a transfer pricing policy that requires transfer at full cost, then,

Transfer price = $475

2.  If Teslum has a transfer pricing policy that requires transfer at market price, then,

Transfer price = $950

3. Minimum Transfer price:

= Market price - Selling expense that could be avoided

= $950 - $135

= $815

Maximum transfer price = Market price per unit

                                        = $950 per unit

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salantis [7]
3,600 becuase if you multiply 50 by 7 it equals 3,500 plus 100 which is the fixed cost
7 0
3 years ago
On January 1 of the current year, the Barton Corporation issued 8% bonds with a face value of $73,000. The bonds are sold for $7
Goryan [66]

Answer:

$6,278

Explanation:

The discount of issuance of bond will be amortized until period of maturity while Total interest expense on a discounted bond is the addition of amortization of the discount amount and coupon payment.

Therefore;

Coupon payment = $73,000 × 8%

= $5,840

Discount on the bond = $73,000 - $70,810

= $2,190

Discount amortized per year = $2,190/5

= $438

Total interest expense = Coupon payment + Amortization of discount

= $5,840 + $438

= $6,278

8 0
3 years ago
Mrs. Turner is comparing her employer’s retiree insurance to Original Medicare and would like to know what services Original Med
irina1246 [14]

Answer:

Original Medicare covers ambulance services.

Explanation:

Since in the question it is mentioned that the Turner compared her employer retired insurance with respect to the Original Medicare and also she would like to know whether what services are covered if the prescribed criteria are met

So here the original medicare covers the ambulance services as this is a pre hospitalization charges that are mentioned in the insurance policy

5 0
4 years ago
Country a specializes in the production of copper and produces it more efficiently than any other country. It buys wheat, which
tatuchka [14]

The choice of country a to purchase wheat from country b is supported by Ricardo's theory of comparative advantage, which is the theory of international commerce.

<h3>What is the trade theory of Ricardo?</h3>

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According to Ricardo's well-known theory of comparative advantage, countries can gain a competitive advantage in international trade by focusing on producing goods with the lowest opportunity costs compared to those of other countries.

<h3>What can we infer about the advantages of free trade from Ricardo's theory of comparative advantage?</h3>

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Learn more about Ricardo's theory of comparative advantage: brainly.com/question/14015888

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7 0
1 year ago
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare
aev [14]

Medicare tax is always payable on gross pay as Descibed below|

<u>Explanation</u>:

Note: 1

FICA Social security’s tax

FICA - social security tax is payable on maximum wages of $128,400.

Once an employee's year to date earnings or cumulative earnings exceed the wage base of $128,400, no additional Social Security tax isto be withheld from the employee's earnings.

So, before calculating the FICA - social security tax, we have to check whether the September earnings along with cumulative earnings until August is exceeding $128,400 or not .

If September earnings plus cumulative earnings until August is exceeding $ 128,400, then.

Social Security tax = [($128,400 minus Cumulative earnings until August) or gross salary whichever is lesser] into 6.20%. and if it is not, then

Social Security tax = Gross pay during September into 6.20%

Note 2

FICA minus Medicare tax

Medicare tax is always payable on gross pay. Medicare tax = Gross pay x 1.45%

6 0
3 years ago
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