Answer:
pic quality is too low so I didn't understand
Answer:174 SE Naranja Ave, Port Saint Lucie, FL ; 38 Maple St, Fitchburg, MA ; 461 SE Thornhill Dr, Port Saint Lucie, FL
Explanation:
The minimum rate of return demanded by the firm is 12%. The closest turnover in the division is 4.02. Here option B is the correct answer.
A company's turnover is the total of its sales during a specific time period. It is sometimes referred to as "income" or "gross revenue."
The typical quantity of assets required to carry out continuing business activities is referred to as average operational assets. This number may be incorporated into the operational assets ratio, which evaluates how much of these assets make up overall assets owned by a company.
Divide the total number of separations that took place within the specified time period by the average number of employees to get your turnover rate. To express that amount as a percentage, multiply it by 100.
Turnover = Sales/Average operating assets
= 25720000/6400000
Turnover = 4.02
To learn more about turnover
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Answer:
a. $11
b. $35
c. If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.
Explanation:
The minimum acceptable price is the price that is acceptable to the transferring division and out of a range of acceptable prices, it is that which would be the best for the company.
When there is excess capacity.
Note : No opportunity costs would exist.
Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost
= $11
When there is excess capacity.
Note : Opportunity costs would exist.
Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost
= $11 + ($35 - $11 )
= $35
Why Capacity of transferring division (Small Motor Division) has an effect on the transfer price.
If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.
