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ss7ja [257]
4 years ago
14

Palli Company has a division that manufactures a component that sells for $63 and has variable costs of $12 and fixed costs of $

21. Another division wants to purchase the component. What is the minimum transfer price if the division is operating at​ capacity?
Business
1 answer:
Ahat [919]4 years ago
7 0

Answer:

minimum transfer price $12

Explanation:

The minimum transfer price should be the cost to produce the additional units to transfer. AKA <em>marginal cost</em>

In this case, the division faces $12 of variable cost to produce a single unit.

As long as the units to transfer are within the relevant range of the current capacity the fixed cost are irrelevant for the transfer price as these are sunk cost (already incurred)

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Equipment with a book value of $80,000 and an original cost of $164,000 was sold at a loss of $34,000. Paid $103,000 cash for a
jonny [76]

Answer:

Cash flows from investing activities is $653,200.

Explanation:

XYZ Company

Statement of cash flows (extract)

Proceed from sale of equipment ($80,000 - $34,000)               $46,000

Purchase of vehicle                                                                       $103,000

Proceed from sale of land                                                            $410,000

Proceed from sale of long-term investments in stock                 $94,200

Cash flows from investing activities                                        $653,200

8 0
3 years ago
Why should policies that attempt to create a ladder of opportunity be carried out in the spirit of open-mindedness? Select all t
OverLord2011 [107]

Answer:

b. Such policies have the potential to equalize society.

Explanation:

Open mindedness policy means giving fair and equal opportunity to all and sundry without being bias. When considering open mindedness policy, information is shared to everyone without considering race, religion background or educational qualifications.

Open mindedness accepts people from diverse background and tends to listen first before judging. It also consider opinions from all side without segregation. Although this is the right thing expected but the result is usually not the case.

Unlike close mindednes which restrict information thereby limiting opportunities, open mindedness helps one to learn, unlearn, relearn and grow. It also comes with being honest-thats who you are.

Thus when policy is enacted on open mindedness, it has potentials to equalize the society.

4 0
3 years ago
An economy in which more effort is devoted to the production of services than to the production of goods is called the:
kirza4 [7]
The economy is the service economy
4 0
3 years ago
On december 31, 2015, a company had assets of $16 billion and stockholders' equity of $8 billion. that same company had assets o
Natalija [7]
<span>On december 31, 2015, a company had assets of $16 billion and stockholders' equity of $8 billion. however it had assets of $20 billion and stockholders' equity of $9 billion as of december 31, 2016. during 2016, total sales revenue was $9 billion and total expenses was $7 billion. As Total asset is 20 billion and stockholders equity is 9 billion the liabilities are 11 billion. The Debt to Asset ratio = Liabilities / Assets = 11 Billion / 20 Billion = .55 (55%)</span>
8 0
3 years ago
Which of the following describes the most typical order of entry into foreign markets?
Veronika [31]

Answer:

None of above is the answer. The correct order is: B.exporting, licensing, franchising, joint venture, and wholly owned subsidiary.

Explanation:

Once the company has selected the market or markets to which it will direct its international expansion strategy, it will move on to the phase of choosing the entry form. The decision will depend on the type of product or service to be exported, the financial commitment that the company is willing to assume, as well as the level of control and coordination of international operations.

“The different input methods are determined according to the nature of the control that can be exercised over the distribution channel, over the products and brands that are marketed in the destination country”

3 0
3 years ago
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