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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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Tibbs Inc. had the following data for the year ending 12/31/18: Net income = $600; Net operating profit after taxes (NOPAT) = $6
vazorg [7]

Answer:

The return on invested capital (ROIC) was 24.4%

Explanation:

Return on invested capital is considered a profitability ratio that measures the return that investors earn from their invested capital.

Return on Invested Capital

= Net Operating Profit after Tax/Invested Capital

= Net Operating Profit after Tax/ Total operating capital  

= $610/$2,500

= 24.4%.

Therefore, The return on invested capital (ROIC) was 24.4%

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3 years ago
Did you know that you can save 15% or more with GEICO on car insurance?
mestny [16]

Answer:

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Explanation:

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The marginal propensity to consume is the: a overall portion of disposable income that is consumed (and not saved) b amount by w
Neporo4naja [7]

Answer:

.d amount by which consumption increases when disposable income increases by $1.

Explanation:

The marginal propensity to consume is measured by measuring what proportion of a $1 increase in income is spend on consumption, so if the marginal propensity to consume is 0.85 it means that when income increases by $1 consumption will increase by $0.85 as (0.85*1)= 0.85

8 0
3 years ago
A divorced woman with 2 young children has a small trust fund that gives her $2,500 a year in income. She collects another $2,50
mezya [45]

Answer: No contribution can be made

Explanation:

The options to the question are:

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b. A contribution can be made based only on the income received from the trust fund.

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d. A contribution can be made based on both the income received from the trust fund and the alimony payments received

From the question, we are informed that a divorced woman with 2 young children has a small trust fund that gives her $2,500 a year in income and that she collects another $2,500 per year in alimony payments.

Based on the above analysis, the woman cannot make a contribution to an Individual Retirement Account this year.

6 0
3 years ago
When does a student need to file the FASFA?
Anastasy [175]
<h3>Hello there!</h3>

Your question asks when does a student need to file the FAFSA.

<h3>Answer: Every year of college attendance </h3>

The reason why "every year of college attendance" would be the correct answer is because the FAFSA is required to be filled out yearly by the students.

The FAFSA stands for Free Application for Federal Student Aid, meaning that this aid will give students the chance to receive financial aid. The reason why they ask for students to file every year because there could be one year where a student doesn't need the financial aid, and there are other years where the student needs the financial aid badly, and this is just to ensure that they're giving money to the right people. This is because financial aid could change for every year. They also have people file the FAFSA yearly to see if they have any other family members that got into college.

<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3><h3 />
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