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Pavlova-9 [17]
4 years ago
10

Assume the assembly division of Baxter Bicycles wants to buy 5,800 trailers per year from the trailer division. If the trailer d

ivision can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles's divisions
Business
1 answer:
Irina18 [472]4 years ago
5 0

Answer: $104

Explanation:

The Trailer division has the capacity to sell ALL of its inventory to outside customers for a price of $104.

They will therefore transfer the trailers to the Assembly line at the same price of $104 that they charge outside customers because anything less would be a loss on profit that could have been made from selling the trailers outside.

This loss on profit would affect the entire Baxter Bicycles and not just the Trailer Division so it is better to sell and transfer at the same price.

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Answer:

providing intangible goods and services

Explanation:

A service business is an organisation that provides services.

Examples of service businesses are airlines, insurance companies, and hospitals.

I hope my answer helps you

3 0
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dsp73

It would be an example of<u> "allopatric speciation".</u>


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Who was the owner of the large estate at derbyshire?
Scrat [10]
Mr. Darcey was the owner
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How might increasing the level of government transfers reduce the size of the economic pie? check all that apply?
maksim [4K]
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A good group decision-making approach when the objective is to make sure that every person’s idea is heard is:
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