Answer:
1. $13.50
2. Decrease in Profit : $ 22,500
Explanation:
<em>Minimum Transfer Price = Variable Costs - Internal Savings + Opportunity Cost</em>
= $12.00 + $2.00 - $2.00 + 1,000/4,000 × ($20.00 - ($12.00 + $2.00))
= $12.00 + $1.50
= $13.50
<em>Maximum Transfer Price can never be more than what the receiving division (Division B can purchase externally)</em>
Maximum Transfer Price = $18.00
Division B will incur more costs when it accepts Baker's offer and declines to transfer any units from Division A. Hence decrease in Profit)
Decrease in Profit = 5,000 units × ($18.00 - $13.50)
= $ 22,500
Answer:
B. The combined costs of converting raw materials to finished goods.
Explanation:
Conversion Costs are the combined costs of converting <em>raw materials</em> to finished goods.
These include the costs of direct labor and manufacturing overheads such as <em>water</em> and <em>electricity</em>.
Answer:
innovation and product research
Explanation:
To develop a new product or service that brings unique value to customers, innovation and product research are very important.
In bringing unique value to customers, the entrepreneur must be proactive in making adequate research to understand what brings value to his potential customers. In order to bring out something unique and truly valuable, the entrepreneur must be innovative and creative.
Answer:
$1,330 per bike
Explanation:
the amount of revenue that Neakanie must recognize = total sales price x [price of the bike / (price of the bike + maintenance service)] = $1,900 x [$1,400 / ($1,400 + $600)] = $1,900 x 0.7 = $1,330 per bike
the journal entry should be:
Dr Cash 1,900
Cr Sales revenue - bike 1,330
Cr Prepaid maintenance services - bike 570
the prepaid maintenance service should be accrued during the year, and revenue must be recognize after each month passes.
The right temperature cooked and baked, Good quality and taste of food, they're supposed to teach you how to work the grill\stove, fryer, etc. maybe teach you to clean dishes, but that's just something in the kitchen not much of food though..<span />