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BartSMP [9]
4 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]4 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.

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Answer:

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When conducting an audience analysis for a presentation, what should you be ready to answer from your audience?
Gennadij [26K]

Answer:  E. What the audience already knows about the subject Previous page

Explanation:

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 E. What the audience already knows about the subject Previous page

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3 years ago
You are an American, working for a US hospital. The hospital sells services to a French hospital. Given a depreciation of the Eu
sdas [7]

Answer:

translation exposure

Explanation:

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6 0
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Which of the following is the term for items that you hand off to a client or management for review and approval and that must b
jenyasd209 [6]

Answer:

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Deliverables -

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8 0
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kifflom [539]

Answer:

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4 0
4 years ago
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