True? I haven’t done anything like that yet
Answer:
$0
Explanation:
Alamos Co. exchanged equipments and $18,200 cash for a similar equipment
The book value of the old equipment is $81,100
The fair value of the old equipment is $91,900
The gain/loss recorded by Alamos can be calculated as follows
= Fair value-book value
= $91,900-$81,100
= $10,800
= $10,800
But since the exchange lacks a commercial substance then, no amount of gain or loss will be recognized/recorded.
Hence Alamos Corporation recorded a gain of $0
Answer: $1.50
Explanation:
Based on the information given in the question, we are informed that the variable cost of each box is $1.50 and usually has a contribution margin of $0.80 per box.
We should note that the minimum transfer price that the box division should find as acceptable will be the relevant cost. In this case, the relevant cost is given as $1.50 pee box and therefore, the minimum transfer price will be $1.50.
Michael Porter, Harvard Business School professor said that strategic position means to preserve what distinctive about a company to achieve sustainable competitive advantage.
Strategic positioning helps determine where a business stands against its competitors, consumers, and the market. Companies that are unique and stand out by their customer connections often have a greater change at competitive advantage and a strong strategic positioning.
