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iVinArrow [24]
3 years ago
11

The Can Division of Vaughn Manufacturing manufactures and sells tin cans externally for $1.20 per can. Its unit variable costs a

nd unit fixed costs are $0.24 and $0.10, respectively. The Packaging Division wants to purchase 50,000 cans at $0.34 a can. Selling internally will save $0.03 a can. Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept? $0.86 $0.71 $1.17 $0.27
Business
1 answer:
Nastasia [14]3 years ago
5 0

Answer:

Minimum transfer price = $1.17

Explanation:

The Can  Division is operating at full capacity, hence it has no excess capacity  .

This implies that it can not produce enough to meet both the internal and external buyers.  

Since Division X can not accommodate the demands of the Packaging Division at a price lower than the external price, because it  will result to a loss in contribution.

To maximize and optimize the group profit

Minimum transfer price = External selling price - savings in internal transfer cost

= $1.20 - 0.03 = $1.17

Minimum transfer price = $1.17

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Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit $590​ Variable cost p
Fofino [41]

Answer:

The company will need to sale 3,883 units to maintain its current operating income of 400,000

Explanation:

We will calculate the point at which the company mantains his current income in units at the new scenario:

\frac{Fixed\:Cost + target \: income}{Contribution \:Margin} = Break\: Even\: Point_{units}

<u>Where:</u>

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

625 - 190 = 435 each units contributes this amount to afford the fixed cost and make a gain.

Current income: contribution x units sold - fixed cost

                             (590-190) x 4,000 - 1,200,000 = 400,000

(1,200,000 + 89,000 + 400,000) / 435 = 3,882.75862 = 3,883 units

The company will need to sale 3,883 units to maintain its current operating income of 400,000

5 0
3 years ago
Communicating effectively, showing a sense of teamwork, and being a good negotiator are all ways to demonstrate which component
Alexxandr [17]
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3 years ago
Carlos Landry finds he has less and less energy to go to work each day. On average he misses two days a week. Carlos may be suff
Zarrin [17]

Answer:

C. Job specialization

Explanation:

Employees boredom is one of the disadvantages of job specialization

Job specialization: This can be defined as a situation where an employee focuses on a particular skills or job position in order to become an expert.

Job specialization is as a result of division of labor. Division of labor is the sharing of roles or functions among employees in a firm so as to Improve productivity.

When a particular role is assigned to an employee for a long period of time, the employee becomes an expert as a result of that.

Advantages of job specialization

• Workers produce more when they occupy a specific role.

• Job specialization leads to time saving in production because employees have become masters in their role

• More expertise is developed through job specialization

Disadvantages of job specialization

• Continuous performance of a particular role might lead to boredom of the employee

• There is fear of job security for the workers. They often wonder what will happen if a firm finds a replacement for them.

7 0
3 years ago
You manage a plant that​ mass-produces engines by teams of workers using assembly machines. The technology is summarized by the
Mashcka [7]

Answer:

$2200

Explanation:

will be Lq25.The total cost function is thus given by the sum of the costs of capital, labor, and rawmaterials:TC(q) = rK +wL +2000q = (10,000)(5) + (5,000)(q25) + 2,000 qTC(q) = 50,000 +2200q.The average cost function is then given by:AC(q) TC ( q ) q  50,000  2200 q q . and the marginal cost function is given by: MC ( q )   TC  q  2200.

5 0
3 years ago
A finance company agrees to loan money to a buyer for a new washer and dryer. What is this an example of?
kirill115 [55]

The correct answer is: B. The finance company is extending credit to a buyer.By agreeing to loan money to a buyer, the finance company is extending credit to a buyer. Once credit is extended to the buyer and if the buyer uses the credit to buy the washer and dryer, the money borrowed then becomes a debt. The finance company may be saving the buyer money, but that cannot be determined from the example. I got this right in U.S.A Test Prep hope this helps! :) <u>[plz reward brainlyiest <3]</u>

5 0
2 years ago
Read 2 more answers
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