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ss7ja [257]
3 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]3 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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Studdard Controls recently declared a quarterly dividend of $1.25 payable on Thursday, April 25, to holder of record of Friday,
elena-14-01-66 [18.8K]

Answer:

April 11th

Explanation:

the dividends will be paid to the owner of the share one day before the record.  This is defined asthe Ex-date ofthe dividends.

DISCLAMER

Assuming it refers to 2019 Apil 12th

the previous business day will be April 11th (we should liook into the calendar and avoid counting Friday and saturdays

for the year 2019 April 12th is a friday so it is okay to define it as April 11th

7 0
3 years ago
When a company sells multiple products, an increase in total sales always results in an increase in total profits.
nevsk [136]

Hindsight is a wonderful thing in any business, or in life in general. We could make the best business decisions and maximise earnings if we had access to a crystal ball that could tell us exactly how many people would buy our goods.

<h3>What Is Cost-Volume-Profit (CVP) Analysis?</h3>

An approach to determining how changes in variable and fixed expenses impact a company's profit is through cost-volume-profit (CVP) analysis.

Companies can utilise CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).

CVP analysis makes a number of presumptions, among them the constancy of the sales price, fixed costs, and variable costs per unit.

Learn more about Cost-Volume-Profit refer:

brainly.com/question/26711135

#SPJ4

5 0
2 years ago
Sustainable Growth Rate You have located the following information on Rock Company: debt ratio = 46.5%, capital intensity ratio
Sliva [168]

Answer:

The correct answer is 10.72% ( Approx.).

Explanation:

According to the scenario, the given data are as follows:

Debt ratio = 46.5%

Capital intensity ratio = 2.51 times

Profit margins = 21%

Dividend payout = 38%

Formula to calculate sustainable growth rate ae as follows:

Sustainable growth rate = (Earnings retention rate × Return on equity ) / ( 1 - (ROE × RR)

where, Retention rate =(1 - dividend payout rate)

= (1-0.38) = 0.62

ROE = Profit margin × Total asset turonver × Equity multipler

= Profit margin × 1/capital intensity ratio × 1/(1-debt ratio)

= .21 × (1/2.51) × 1/(1-.465)

= .21 × 0.398 × 1.869

= 0.1562

=15.62%

So, Sustainable growth rate = (0.1562*0.62) / 1 - (0.1562*0.62)

= 0.096844 / 0.903156

= 0.1072

= 10.72% (approx.)

Hence, the correct answer is 10.72% (approx.).

7 0
3 years ago
​Belstone, Inc. is a merchandiser of stone ornaments. It sold​ 15,000 units during the year. The company has provided the follow
Georgia [21]

Answer: $200,100

Explanation:

Given that,

Units sold = 15,000

Sales Revenue = $510,000

Purchases​ (excluding Freight​ In) = $310,500

Selling and Administrative Expenses = $36,000

Freight In = $15,900

Beginning Merchandise Inventory = $42,500

Ending Merchandise Inventory = $59,000

Cost of goods sold = Beginning Merchandise Inventory + Purchases​ + Freight In - Ending Merchandise Inventory

                                = $42,500 + $310,500 + $15,900 - $59,000

                                = $309,900

Gross Profit = Sales Revenue - Cost of goods sold

                    = $510,000 - $309,900

                    = $200,100

8 0
3 years ago
Additional Information: Net income for 2020 was $26,890. Land was sold for cash at a loss of $2,000. Cash dividends were paid du
slega [8]

Answer:

The question is wrong ,find attached correct question:

The correct option in the attached is $58290 ,option E,which is missing in the original question

Explanation:

Cash flow from operating activities=net income+depreciation charge-increase in accounts receivable+decrease in inventory+decrease in prepaid expenses-decrease in accounts payable+loss on sale of land-gain on sale of equipment

cash flow from operating activities=$26,890+($135,000-$92,000)-($77,000-$64,000)+($140,000-$132,000)+($16,540-$12,140)-($45,000-$33,000)+$2000-$1000=$58290

Download xlsx
5 0
3 years ago
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