Answer and Explanation:
a. The computation of operating profit is shown below:-
Profit per unit = Purchase price from outside per unit + variable cost of production internally
= $15 - $7
= $8
Total increment in operating profit = Profit per unit × Total number of units
= $8 × 24,000
= $192,000
b. Minimum transfer price = Variable cost = $7 (because polk has overcapacity and there is no change in fixed cost and polk minimum has to recover its variable production cost)
c. Maximum transfer price = purchase cost from outside supplier = $15 (because if the internal transfer piece is more than $15 Bishop will lose so he prefers to buy from outside and the company as a whole will lose $192,000 in incremental operating profit
Answer:
Adjustment, is the right answer.
Explanation:
Adjustment is the reason that changes the career or lifestyle. For example, a girl who is working, if she gets married then there are chances that she will continue her professional life but after getting pregnant she has to adjust herself to not go outside. She will avoid going to the office, shopping malls, shopping, etc. Therefore, she has adjusted herself with the situation that changes her carrier (working professional) and her lifestyle.
Answer:
a) 10
Explanation:
Calculation to determine Approximately how many salespeople does Splash World need to service 1000 accounts
First step is to determine the selling time
Using this formula
Selling time=Number of customers *Sales calls per year*Hours per sales call
Let plug in the formula
Selling time=1000 * 5 *2 hours
Selling time= 10,000 hours
Second step is to determine the number of hours they used to sell
Hours to sell= (40 hours per wweek* 50 weeks)*1/2
Hours to sell = 2000 hours per year*1/2
Hours to sell= 1000 hours per year.
Now let determine how many salespeople does Splash World need to service 1000 accounts
Number of salespeople=10,000 hours /1000 hours per year
Number of salespeople=10
Therefore Approximately how many salespeople does Splash World need to service 1000 accounts will be 10 salespeople
Answer:
the answer is b
Explanation:
cause its the annual cash outflow
The equilibrium price is $0.5 while the equilibrium quantity is 8.5
From the Demand data that we have in this question,
Slope = 3
Intercept = 10
The demand equation
D = -3p + 10
D = 10 - 3p
The supply data
Slope = 5
Intercept = 6
Supply equation
S = 6 + 5p
D = S
This is because at equilibrium, <u>supply = demand</u>
Therefore,
10-3P = 6+5P
collect like terms
10-6 = 3p+5p
4 = 8p
Divide through by 8
Equilibrium price = $0.5
The equilibrium quantity
D = 10 - 3*0.5
= 10-1.5
= 8.5
Therefore from the calculation, the equilibrium price is $0.5 and the equilibrium quantity is 8.5
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