Answer:
Fillmore Industries
Fillmore's Systems Division
1. Minimum and Maximum Transfer Prices:
PCB Transistor
Minimum transfer
price $12.00 $3.45
Maximum transfer
price $12.09 $3.58
2. Yes. The Transistor Division can meet this price. It can sell at $2.60 (Variable cost plus markup) by eliminating the fixed cost, which is not a relevant cost.
3. A transfer price of $11 reduces the profitability of the Transistor Division while it increases the profitability of the other division. The transfer price should be a market-competitively determined price to encourage efficiency in the divisions.
Explanation:
a) Data and Calculations:
PCB Transistor
Direct materials 1,85 0,40
Direct labor 4,20 0,90
Variable overhead 2,40 0,70
Fixed overhead 0,85 0,75
Total Cost 9,30 2,75
Marked up Price $12.09 $3.58
Minimum transfer
price $12.00 $3.45
Maximum transfer
price $12.09 $3.58
Market price $12.00 $3.45
Answer:
A. plus the net outflow of capital abroad.
Explanation:
National saving of any nation is derived from the people´s savings from the total earning after paying for all nessesities, taxes and government purchase. We can further include net export to the total saving, which is export minus import. We know value of net exports must be equal to the value of net capital outflow. Thus, national saving equals domestic investment and the net outflow of capital abroad.
S= Y-C-G+NX
Where S = saving, Y= Income, C= current consumption, G= Governement purchase, NX= Net export.
Answer:
I believe it's the SBDC but I'm not 100% sure tho
Answer:
-1.67
Explanation:
Price elasticity of demand using midpoint method can be formulated as below:
Price elasticity of demand = {(Q_2 - Q_1)/[(Q_2 + Q_1)/2]}/{(P_2 - P_1)/[(P_2 + P_1)/2]}, where:
<em>Q_1 and Q_2 are the volumes before and after price changes;</em>
<em>P_1 is initial price and P_2 is new price.</em>
Putting all the numbers together, we have:
Price elasticity of demand = {(50-100)/[(50+100)/2]}/{(3-2)/([(3+2)/2]} =
- 1.67
Note: Negative sign indicate that when price increases volume will decrease.
