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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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A traditional store selling products
4vir4ik [10]
Confused? What is the problem at hand?
3 0
3 years ago
Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $0.65 at the end of the year. Its div
Anastaziya [24]

Answer:

14.90%

Explanation:

We know,

Current stock price, P_{0} = \frac{D_{1}}{r_{s} - g}

Given,

Current stock price, P_{0} = $12.00

growth rate, g = 9.50% = 0.095

Expected annual dividend, D_{1} = $0.65

We have to determine the expected rate of return (r_{s}).

Putting the values into the above formula, we can get,

Current stock price, P_{0} = \frac{D_{1}}{r_{s} - g}

or, $12.00 = $0.65 ÷ (r_{s} - 0.095)

or, $12.00 × (r_{s} - 0.095) = $0.65

or, r_{s} - 0.095 = $0.65 ÷ $12.00

or, r_{s} - 0.095 = 0.0542

or, r_{s} = 0.054 + 0.095

Therefore, r_{s} = 0.149

The expected rate of return = 0.149 or 14.90%

7 0
3 years ago
douglas pays selena $43,300 for her 30% interest in a partnership with net assets of $127,900. following this transaction, dougl
Katarina [22]

Selena receives $43,300 from Douglas for her 30% stake in a partnership with $127,900 in net assets. After this transaction, the capital account of Douglas should have a account balance of $38,370.

Douglas's Capital account balance

= Net assets x30%

= $127,900 x 30%

= $31,875

Therefore, Douglas's capital account should have a credit balance of $38,370

A financial repository's account balance represents the amount of money there is at the end of the current accounting period. It is the sum net assets of the balance carried over from the previous month and the net difference between the credits and debits that have been recorded during any given accounting cycle.

The amount due or the net debt may be shown in an account balance. The former is frequently depicted in financial accounts that include net assets recurring bills, like those for utilities or gym memberships. The latter, on the other hand, is reflected in accounts with negative cash balances, such as bank overdrafts.

Learn more about account balance here

brainly.com/question/28699225

#SPJ4

4 0
1 year ago
A level of ability or how good a person is at something is called
Tasya [4]
Hello there, and good morning to you! :D

A level of ability or how good a person is at something is called:

skill. 

Skill measures how good you are at something, or how long you've been doing it, etc. The more skill you have, the better you are about something!

I hope this helps!
~kaikers
5 0
3 years ago
Let’s assume that each person in the United States consumes an average of 39 gallons of soft drinks (non-diet) at an average pri
icang [17]

Answer:

Instrucitons are listed below.

Explanation:

Giving the following information:

Let’s assume that each person in the United States consumes an average of 39 gallons of soft drinks (non-diet) at an average price of $2.00 per gallon and that the U.S. population is 295 million. At a price of $1.50 per gallon, each consumer would demand 49 gallons of soft drinks.

Price= 2

Demand= 295*39= 11,505 million

Price= 1.5

Demand= 295*49= 14,455 million

8 0
3 years ago
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