It's a protection that guarantees to pay you in the event of financial losses.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
1. $13.50
2. Decrease in Profit : $ 22,500
Explanation:
<em>Minimum Transfer Price = Variable Costs - Internal Savings + Opportunity Cost</em>
= $12.00 + $2.00 - $2.00 + 1,000/4,000 × ($20.00 - ($12.00 + $2.00))
= $12.00 + $1.50
= $13.50
<em>Maximum Transfer Price can never be more than what the receiving division (Division B can purchase externally)</em>
Maximum Transfer Price = $18.00
Division B will incur more costs when it accepts Baker's offer and declines to transfer any units from Division A. Hence decrease in Profit)
Decrease in Profit = 5,000 units × ($18.00 - $13.50)
= $ 22,500
Answer:
From the standpoint of hotel management, this "money laundry" should be viewed as: both a cost center and a profit center
Explanation:
A profit center is a branch or division of a company that is expected to add to the entire profitability of that company.
A cost center does not costs the organization money to operate and does not add profit directly to the company.
However, it can contribute to profit indirectly by enhancing the company's operational excellence, customer service, and general service delivery.
Cleaning and polishing coins (pocket change) for the guests as a unique service could come as a perk that makes San Francisco's St. Francis Hotel a preferable hospitality center.
Even though it costs to maintain the money laundry, the hotel can carefully increase the general rates to include the additional cost.
Answer:
Kevin has dividend income of:_______
a. $150,000.
Explanation:
Kevin became a 50% shareholder of Amaryllis in July. So, Kevin is entitled to receive 50% of any distributions made by Amaryllis from the July date. Since Amaryllis distributed $300,000 on November 1, Kevin will receive a dividend income equivalent to $150,000 from Amaryllis. The remaining 50% goes to his partner in business. Kevin could not be entitled to the distribution made on February 15, by which date he was not yet a shareholder of Amaryllis.
