Answer:
The minimum transfer price that the Alabama Division should accept is $60 per unit.
Explanation:
The division providing the goods internally often has the opportunity to sell these same goods externally instead and so the minimum they will be willing to charge another division is cost plus their profit margin (i.e. the minimum they would normally charge an external customer).
the minimum price to be charged is :
Variable cost per unit = $24
Fixed Cost per unit = $15
Total Cost per unit = $39 and the profit margin when added makes its selling price to be equal to $60 (i.e. the price which is to be charged from outside customers).
Alabama Division will cover its minimum opportunity cost i.e. its sales price to the external customers which it will charge from Arkansas division .
Minimum transfer price = $60 per unit.
Therefore, The minimum transfer price that the Alabama Division should accept is $60 per unit.
The company utilizes a standard discount rate crosswise over various lines of business in light of the fact that the deliberate hazard over their distinctive business lines is the same. The financing cost charged to business banks and other store foundations for advances got from the Federal Reserve Bank's markdown window.
Answer:
Direct material used= $4,900
Explanation:
Giving the following information:
Beginning raw materials inventory $ 3,900
Raw materials purchases 5,400
Ending raw materials inventory 4,400
<u>To calculate the direct material used, we need to use the following formula:</u>
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 3.900 + 5,400 - 4,400
Direct material used= $4,900
Answer:
The statement is: True.
Explanation:
If we have been given an assignment, it is important to set a schedule of activities to ensure that the final form of our work is delivered on or before the <em>due date</em>, if possible. In the way, there could be problems of various types -for example, technology when delivering a report- that could interrupt our work. Therefore, it is important to consider those risks while scheduling so that we have a contingency plan that will not impact our research and the date we will deliver it.
