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Musya8 [376]
3 years ago
8

The Wood Division of Fir Products, Inc. manufactures rubber moldings and sells them externally for $55. Its variable cost is $25

per unit, and its fixed cost per unit is $7. Fir’s president wants the Wood Division to transfer 5,000 units to another company division at a price of $32. Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is
Business
1 answer:
Andreyy893 years ago
6 0

Answer:

$25

Explanation:

Since there is an available capacity of 5,000 units so in this case, the minimum transfer price which should be accepted is equal to the variable cost per unit i.e $25 and the same is to be considered as it is enough to cover its variable production cost  

Therefore, all the other information which is given in the question is not relevant. Hence, ignored it  

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Vincent operates a scenic tour business in Boston. He has one bus which can fit 50 people per tour and each tour lasts 2 hours.
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Answer:

There is some information missing, and when I looked for it I found similar questions but the demand was already given and the question was about Vincent's total daily income.

Passenger                  Price                  Daily demand

Adults                          $18                        70

Children                      $10                        25

Senior citizens            $12                        55

total                                                           150

total revenue per day = ($18 x 70) + ($10 x 25) + ($12 x 55) = $1,260 + $250 + $660 = $2,170

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3 years ago
Concepts like value and relationship marketing are important in designing a marketing program because such a program is what con
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Income Statement Sections During the current year, David Corporation sold a segment of its business at a gain of $210,000. Until
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Answer is given below.

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-Income from Continuing Operation                                  700000

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-Loss from operations of                                        60000

discontinued segment (75000*80%)  

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segment (210000*80%)

-Net Income                                                                             808000

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3 years ago
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