1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
BartSMP [9]
3 years ago
8

Delta Company sells bells to customers for $1 each. The variable cost to manufacture the bells is 10 cents. If the rattle depart

ment, a division of the Delta Company, wants to use the bells in its new line of rattles, which of the following transfer prices can be used if there is excess capacity?
a. $0.00
b. $0.05
c. $0.11
d. $0.95
e. $1.50
f. $2.00
Business
1 answer:
kherson [118]3 years ago
3 0

Answer:

C. $0.11

Explanation:

When there is excess capacity and there are no incremental fixed costs the break even transfer price would be the marginal cost of production. This is the least transfer price the Bells can sell to Rattle without making a loss. The most likely transfer price then would be $0.11 which allows the bells to cover their costs and also make 1 cent in profits. Option A, B and D would all be making losses where as Option E and F are two steep a price and may be unprofitable for rattle.

Hope that helps.

You might be interested in
​kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. after the cereal begins to a
Dafna11 [192]
<span>The fact that Kellog is increases its promotion expenditure to counteract competitive responses means that </span>Kellogg's is in the​ maturity stage of the product life cycle. The maturity stage us the third stage of the product life cycle, and comes a<span>fter the </span>Introduction<span> and </span>Growth<span> stages.
</span>In this stage the companies are focused on maintaining their market share in the face of a number of different challenges.
7 0
3 years ago
Which of the following statements is NOT correct? Select one: a. After a 3-for-1 stock split, a company's price per share should
butalik [34]

Answer:

D is not correct statement.

Explanation:

The statement which is not correct is d. the stockholders are required to pay taxes on dividends even if they are to be reinvested. So this statement is not correct and the rest all statements are correct for example, statement a is correct because when there is stock split then the number of outstanding stock will increase where as price per share will fall because there will be more number of stock for 1 stock. Statement b is also correct because usually when there is stock repurchase it signals company management that the stock is undervalued.

5 0
3 years ago
Read 2 more answers
If one-year nominal interest rate in the U.S. is 3%, while the one-year nominal interest rate in Australia is 5%. The spot rate
Mariana [72]

Answer:

to get 5,00,000 australian dollar at the forward rate we are goign to need 4,704,000 US dollars

Explanation:

spot x (1 + (US rate - Australia rate) x time)

0.96 x (1+(0.03-0.05)x1 year) =

0.96 x 0.98 = 0.9408 forward exchange rate

$5,000,000 Australian Dollar * 0.9408 = 4,704,000 US dollars

3 0
3 years ago
Alton ordered an official NFL jersey for his son's birthday and is hoping it will arrive on time. Luckily, the company sent him
postnew [5]

The form of customer communication here is what is referred to as delivery status.

Given the FedEx tracking number that Alton has received, he would be able to get a customized and an in-depth tracking of the NFL jersey that he has ordered for his son.

The availability of a tracking number would also help to build his faith and confidence in the delivery service. This is because it is going to give him a timeline of his good that would help him to anticipate the delivery.

Read more on brainly.com/question/7146441?referrer=searchResults

5 0
2 years ago
Diamond Company has three product lines, A, B, and C. The following financial information is available:
const2013 [10]

Answer:

e. Increase by $4,500.

Explanation:

<u>Analysis of the effect of discontinuing Product Line C</u>

Income :

Rent Income                                                    $6,000

Savings : Fixed Costs - Avoidable                 $3,000

Total Income                                                   $9,000

Costs :

Opportunity Cost - Contribution Margin       $4,500

Total Costs                                                      $4,500

Net Income (Loss)                                           $4,500

therefore,

By discontinuing Product Line C, operating income for the company will likely  Increase by $4,500

5 0
3 years ago
Other questions:
  • As a regional sales officer, one of brandon's job responsibilities is to process the yearly appraisal forms of his subordinates
    12·1 answer
  • One way of controlling "nuisance" variables is to match the various groups by picking the confounding characteristics and delibe
    14·1 answer
  • You bought a bond 8 years ago for​ $1,000. It has a​ $1,200 face value and a nominal annual bond rate of​ 10%, paid semiannually
    7·1 answer
  • According to the video, what are some things that Human Resources Managers do? Check all that apply.
    5·2 answers
  • Definition: The total value of all the goods and services produced within a country in a given year
    10·1 answer
  • Your textbook authors describe a treatment plan for one of the somatic symptom and related disorders that includes efforts to re
    14·1 answer
  • The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient
    9·1 answer
  • Under _________dividend reinvestment plan, the company gives any cash dividends that investors would have received in a bank, wh
    9·1 answer
  • Danielsen's has 15,000 shares of stock outstanding and projected annual free cash flows of $48,200, $57,900, $71,300, and $72,50
    6·1 answer
  • A company's ____________ is the percentage of the total target market for the product that belongs to the company.
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!