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3 years ago

Transfer Pricing

Business

1 answer:

dusya [7]3 years ago

3 0

Answer:

Pembroke= $105,000

Multinomah= $120,000

Explanation:

Giving the following information:

The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $90 per unit. These same materials are produced by the Pembroke Division.

The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $75 per unit. The division is currently producing 120,000 units and has capacity of 150,000 units. The two divisions have recently negotiated a transfer price of $82 per unit for 15,000 units.

Pembroke= 15,000*(82 - 75)= $105,000

Multinomah= 15,000*(90 - 82)= $120,000

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College education results in a positive externality for society. Explain whether the market failure that results from this exter

allochka39001 [22]

Answer:

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3 years ago

Guthrie Enterprises needs someone to supply it with 210,000 cartons of machine screws per year to support its manufacturing need

vlada-n [284]

Answer:

$6.9807 per carton

Explanation:

210,000 cartons of machine screws

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fixed manufacturing costs $705,000 per year

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initial investment in net working capital $375,000

tax rate 22%

discount rate 10%

price per carton?

initial investment = -$3,025,000

CF₁ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980

CF₂ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980

CF₃ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980

CF₄ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980

CF₅ = [(R - $705,000 - $486,000) x 0.78] + $486,000 + $220,000 + $375,000 = 0.78R + $152,020

$3,025,000 = (0.78R - $442,980) / 1.1 + (0.78R - $442,980) / 1.1² + (0.78R - $442,980) / 1.1³ + (0.78R - $442,980) / 1.1⁴ + (0.78R + $152,020) / 1.1⁵ = 0.709R - $402,709 + 0.645R - $366,099 + 0.586R - $332,817 + 0.533R - $302,561 + 0.484R + $94,392

$3,025,000 = 2.957R - $1,309,794

$4,334,794 = 2.957R

R = $4,334,794 / 2.957 = $1,465,943.19

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4 years ago

In a fuel economy study, each of 3 race cars is tested using 5 different brands of gasoline at 7 test sites located in different

romanna [79]

Answer:

210

Explanation:

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3 years ago

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tatiyna

Answer:

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